topic Use the amount from your 1098 -- $5708. in Deductions & credits

How do I treat upfront Mortgage Insurance Premiums, and property taxes, paid at closing?

mtlons — Thu, 06 Jun 2019 09:27:30 GMT

I bought a house in 2016, via FHA, so I paid Mortgage Insurance Premium upfront, at closing. When I walked through TurboTax, it put that full amount in line 13 of Form 1040 Schedule A. But in doing more research, it looks like I'm supposed to spread that amount over a few years?

Also, my 1098 shows no property tax paid in Box 10, but my closing documents show I paid 2 months of taxes (closing date was mid October), so can I deduct that amount

Thanks! Any idea why TurboTax doesn't automatically alloc...

mtlons — Thu, 06 Jun 2019 09:27:33 GMT

Thanks! Any idea why TurboTax doesn't automatically allocate the premium over the time period? During the prompt, it just had my fill in whatever was in Box 5 of my 1098

Followup question...Box 5 of my 1098 is $5708, but my clo...

mtlons — Thu, 06 Jun 2019 09:27:34 GMT

Followup question...Box 5 of my 1098 is $5708, but my closing documents show MIP upfront at $5488. Which of those do I divide by 84 months?

Use the amount from your 1098 -- $5708.

IreneS — Thu, 06 Jun 2019 09:27:35 GMT

Use the amount from your 1098 -- $5708.

Re: How do I treat upfront Mortgage Insurance Premiums, and property taxes, paid at closing?

Manderine11 — Sun, 26 Jan 2020 03:15:08 GMT

Yes, for FHA loans you have to allocate the amount of the upfront PMI across either 84 months (7 years) or the length of the mortgage, whichever is shorter. The only loans where you can take the full deduction for upfront PMI in the tax year you paid it are VA loans and USDA loans.

As for your second question, yes you can deduct the two months of taxes indicted on your closing documents.