I made over $109,000 in 2009 and could not deduct my mortgage insurance premium as a result. In 2010 I made less than $100,000 so I'm eligible to deduct my mortgage insurance premium. Can I carryforward my mortgage insurance premium from 2009 and how do I go about doing that? I noticed that you can carryforward mortgage interest but I don't see that as an option for mortgage insurance. Do I just treat the mortgage insurance as interest?

Thanks

“Can I carryforward my mortgage insurance premium from 2009 and how do I go about doing that?”---> Assume that you purchased your home in May of 2009 and financed the home with a 20-year mortgage. You also prepaid all of the $9,240 in mortgage insurance premium required at the time of closing in May. Since the $9,240 in mortgage insurance premium is allocable to periods after 2009, You must allocate the $9,240 over the shorter of the life of the mortgage, 20 years in this case, or 84 months. Your adjusted gross income (AGI) for 2009 is $76,000. Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2009. For 2010, you can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less.
“ I noticed that you can carryforward mortgage interest but I don't see that as an option for mortgage insurance. Do I just treat the mortgage insurance as interest?”----> You can treat amounts you paid during 2009 for qualified mortgage insurance premium as home mortgage interest. You can deduct mortgage insurance premiums on Schedule A (Form 1040), line 13.

I've been told elsewhere that you can't carryforward PMI like interest. Are you sure you can?

Please visit the IRS website here; Publication 17 (2010), Your Federal Income Tax

I looked at the site, it says that you can treat pmi like interest but in the carryforward sheet it says you need to be issued a credit certificate and it only applies to interest.

I talked to a tax consultant and they said I couldn't carry it forward.

“I looked at the site, it says that you can treat pmi like interest but in the carry forward sheet it says you need to be issued a credit certificate and it only applies to interest.”----> Correct; this is the statement that I cited from the website; QUOTE,” generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained.”
“I talked to a tax consultant and they said I couldn't carry it forward.”----> I guess it is correct; as said above ,if you paid premiums that are allocable to periods after 2010, you must allocate them( NOT CARRYFORWARD’em) over the shorter of: The stated term of the mortgage, or 84 months, beginning with the month the insurance was obtained by treating amounts you paid during 2009 for qualified mortgage insurance premium as home mortgage interest. You can deduct mortgage insurance premiums on Schedule A (Form 1040), line 13.Sorry for that.