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Julia Said:

Is Upfront Mortgage Insurance paid at a mortgage refinancing deductible from income taxes?

We Answered:

I provided a link below... and I think the answer is there. Not sure the deduction works for a re-fi. But if it does, pretty sure you would have to amortize it for the duration of the mortgage.

Barry Said:

Is payment of a mortgage escrow shortage tax deductible?

We Answered:

Sorry my friend, but payments toward escrow accounts are NOT tax deductible. What IS tax deductible is your property tax. The IRS and your state don't care how much you paid for homeowner's insurance -- they're only interested in how much you paid in property taxes. However, if you bought your home this year or refinanced your home, you may be able to write off the closing costs as well. And of course you can write off the total amount of interest you paid against your mortgage. You should get an IRS form from your mortgage company that tells exactly how much you paid in interest, and you should also get another IRS form from your state or city/township that tells exactly how much you paid in property tax.

P.S.: Did you know that your vehicle registration is usually tax deductible if you itemize your deductions? May not be much, but every little bit helps.

Lee Said:

PMI (Private Mortgage INSURANCE)- deductible?

We Answered:

There's a line on Schedule A for PMI. However you must have taken out the mortgage as a purchase money mortgage (NOT a re-fi) in 2007 to qualify. And only the PMI that's attributed to 2007 may be deducted. If what you paid covered more than just 2007, you must pro-rate it.

Elaine Said:

Real estate tax deductions and credits, please explain the difference?

We Answered:

You need an accountant, or try doing the Turbo Tax program, it walks you through all the steps and mentions any possible deduction. The amount you deduct when you own a house might not add up to much. You might still be better off just getting the standard deduction instead of itemizing deductions. I own a house and Turbo Tax figured out I was better off financially just taking the standard deduction.

Ivan Said:

Is Property Tax I pay on my home income tax deductible ?

We Answered:

Yes it is :) and so is the interest you pay on the mortgage.

Good Luck