PMI Tax Deductibility passed as part of the American Taxpayer Relief Act of 2012.
This allows mortgage insurance (MI) to be tax deductible for 2012 and 2013 and is good news for San Diego Home Buyers.
Just make sure you read the small print …
The provision extends the ability to deduct the cost of mortgage insurance only on a qualified personal residence. There are personal income limits for the deduction. The deduction is phased-out by 10% for each $1,000 by which the taxpayer’s AGI exceeds $100,000. Thus, the deduction is unavailable for a taxpayer with an AGI in excess of $110,000. The bill extends this provision through 2013.