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I have an FHA loan so my mortgage insurance is financed. Do I input the entire Upfront mortgage insurance premium (that is financed) in the mortgage ins premium box?
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June 4, 2019
10:25 PM
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Deductions & credits
No.
Publication 936, states that private mortgage insurance premiums must be amortized over an 84-month period. It means that even though you may have prepaid a larger amount when closing, you can only deduct the portion that is allocable for the months you paid in 2016.
Ex: I prepaid $6000 in private mortgage premium when I closed my home on 7/1/2016. $6000/84 = $71.42. $71.42 is paid to my mortgage company with my mortgage payment for the rest of the year. I can deduct $71.42 X 6 months paid = $428.52 for 2016.
The rest of the prepaid amount is deducted in future tax years.
https://www.irs.gov/pub/irs-pdf/p936.pdf
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June 4, 2019
10:25 PM