1098 substitute form includes the the upfront PMI in box 5. Should I include this amount in the mortgage insurance section. Does Turbo Tax allocate it automatically?

[LisaBr]

Yes, include the PMI from your 1098, Box 5 in the Mortgage Interest section.  TurboTax will allocate it for you correctly.

You will enter the monthly PMI figure for the number of months in 2017 from the closing date.  (For example, you paid $5000 PMI at closing on 6/1/2017.  $5,000 divided by 84 mos = $59.52/mo.  6 mos times $59.52 = $357.14.  Now you have 78 mos to amortize.)  With this example, you would enter $357.14 in the PMI box.

Next year, 2018 taxes, you will $714.24 for the PMI using the above example.  You would continue to use this figure for the next 5.5 years. 

However, if you sell this house before the amortization period is complete, you can not accelerate the amount and will lose this deduction per the IRS.

[Edited:  04.17.2018  7:39 PM EST]

[aree-sollis]

Should I include the up-front PMI paid as well?

[LisaBr]

Is it listed in Box 5 of your 1098?

[LisaBr]

Are you wanting to allocate this over 84 months?

[aree-sollis]

Yes, they included the up-front PMI in box 5.  Can I deduct it now or do I have to allocate it over 84 months?  If I have to allocate it, where do I do that in Turbo Tax?

[LisaBr]

I updated your answer above.

[LisaBr]

FYI:  Just announced by IRS...<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/irs-provides-additional-day-to-file-and-pay-for-taxpayers-through-wedne...>

[aree-sollis]

Thanks for your help!