The President signed the Bipartisan Budget Act of 2018, H.R. 1892, on Feb. 9, 2018. The deduction applies to “qualified residences”. Generally, that includes the borrower’s primary residence and a non-rental second home. As with mortgage interest, borrowers can deduct mortgage insurance premiums that they have paid on both their primary residence and one other qualified residence each year. Investor loans are not eligible.
- The bill extends a number of tax provisions that expired at the end of 2016 and were retroactively reinstated for 1 year through 2017
- Families with total adjusted gross income up to $100,000 may deduct 100% of the mortgage insurance premiums paid in 2017
- The MI tax deduction gradually phases out until adjusted gross income reaches $110,000, at which point, the deduction reaches $0 (see chart below)
Please contact me for further questions regarding mortgage insurance or any other Michigan home loan questions.