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Home Buyers get some Tax Relief for 2007 |
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From Exit_Realtor
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This year in December the Tax Relief and Health Care Act of 2006 of passed
by Congress and signed into Law by the President.
This Bill extends many provision that were about to expire in the up
coming year. It covers a wide range of tax issues for corporations,
small business. Several areas dealing with contraction improvements
extension of Go Zone funds, higher education credits, new markets tax credits,
work opportunity credits,straight line cost recovery for leasehold improvements, and more.There is to much to mention in this brief informational piece for potential home buyers.
One of the provisions that will effect home buyers the most allows the deduction of PMI ( Private Mortgage Insurance) for home purchases made starting in 2007. Sorry for those that closed on property in 2006.
Borrowers closing loans to purchase homes in 2007 who have annual household incomes of $100, 000 or less will be able to get a low down payment mortgage and deduct the a large amount of their mortgage insurance premiums on their federal tax return.
In the technical explanation presented pg. 106 it states, the provision provides that premiums paid or accrued for qualified mortgage insurance by a taxpayer during the taxable year in connection with acquisition indebtedness on a qualified residence of the taxpayer are treated as interest that is qualified residence interest and thus deductible. (Ref.)
So remember when you are with your lender to ask for the hard numbers of your
mortgage payment with extra attention to PMI. Keep track of your records because it could mean some savings for you when the next tax time rolls around.
Disclaimer: This article is for informational purposes only. It is not intended to be used for Tax advise in anyway. Seek out your own Tax advisor or Accountant for your Tax purposes.
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