Does the calculated tax deduction include PMI?
• Short answer, no PMI is not included in the tax deduction numbers. Traditionally PMI has not been tax deductible. In 2007 congress passed a bill allowing PMI to be tax deductible for homes purchased in 2007. The rule does not apply to loans before this year and unless extended will not continue beyond 2007. The other requirement for PMI to be tax deductible is that your adjusted gross income (as calculated on your tax return) is below $50,000 ($100,000 for married couples). Topcalc has chosen to not include this in our calculated tax deduction until the rule is made permanent. It is also our opinion that since it only slightly increases the amount of deduction that a house provides, it?s not a significant factor in figuring the tax advantages of home ownership.
