Extension of the Mortgage Insurance Tax Deduction Uncertain

Numerous tax provisions, including the mortgage insurance tax deduction, will expire January 1st because Congress did not pass its annual tax extension bill before the lawmakers left town December 23rd.

The mortgage insurance tax deduction went into effect with new mortgage loans closed January 1 through December 31, 2006. Every year since then, Congress has passed the law extending the tax deduction for another year.

The law to make mortgage insurance tax deductible was to help homeowners make buying a home, with mortgage insurance in their monthly payment, more affordable. Just as mortgage interest can reduce a homeowner's tax bill to the government, the mortgage insurance tax deductibility does the same.

Stay tuned. . .