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The good news is that mortgage insurance, also known as, PMI can still be deducted for tax purposes in 2019, but keep reading to understand all the details and new laws on PMI and tax deductions for homeowners this year.

The deduction for PMI has been set to expire several times and has been extended by Congress each time. And 2018 is no exception. ... Once approved, the PMI deduction essentially allows you to treat your mortgage insurance premiums as interest for tax purposes.

The good news is that mortgage insurance, also known as, PMI can still be deducted for tax purposes in 2019, but keep reading to understand all the details and new laws on PMI and tax deductions for homeowners this year.

Can I deduct private mortgage insurance (PMI or MIP)? Not on your tax year 2018 return; this deduction expired at the end of 2017. For tax year 2017, the answer is yes, provided you itemize and the insurance contract was issued after 2006.

You closing costs are not tax deductible if they are fees for services, like title insurance and appraisals. You can deduct these items considered mortgage interest: Mortgage insurance premiums for contracts issued from 2013 to 2018 but paid in the tax year. Points since they're considered prepaid interest.

Mortgage insurance premiums paid during the year are reported on Form 1098. You should receive this form from your lender after the close of the tax year. You can find the amount you paid in premiums in box 4. There's currently no limit on the amount of the deduction you can claim if you and your loan qualify.

Currently, we have the Bipartisan Budget Act of 2018 which says homeowners can deduct mortgage insurance premiums paid in 2017 and beyond. Always check with your CPA, but for now, mortgage insurance is still deductible for the 2017 tax year.

Mortgage insurance premiums are itemized tax deductions. They're reported on line 13 of Schedule A, "Interest You Paid." You can't claim the mortgage insurance premiums deduction if you claim the standard deduction you must itemize using Schedule A.

The insurance policy protects the bank in case of default by the borrower. A deduction is allowable under section 8-1 of the ITAA 1997 for expenses incurred in gaining or producing assessable income. However, the deduction is only allowable to the extent that it is not capital, private or domestic in nature.

For 2019, it rises to $12,200 for singles and $24,400 for couples. The standard deduction is the amount filers can subtract from income if they don't list itemized write-offs for mortgage interest, charitable donations, state taxes and the like on Schedule A.

Before tax reform, those who itemized could generally deduct charitable contributions up to 50% of their adjusted gross income. Tax reform bumped that limit up to 60%. ... Many who itemized their deductions on their 2017 tax returns probably won't itemize for their 2018 returns (which they'll file in 2019).

In 2019, car donors can choose one of two options allowed by the IRS for a tax deduction: Based on the value of your car, you may claim up to $500 immediately, without waiting for the resale price. ... If your car is headed to an auction, auto technicians will make repairs to your car to get a better sale price.

You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

The charitable donation deduction allows you to lower your taxable income for donations or gifts to qualified, tax-exempt organizations. ... If you choose to itemize your deductions for the 2018 tax year, there are still rules around what you can and can't deduct and how much when it comes to charitable donations.

In the new tax bill for 2018, mortgage interest will still be fully deductible in many cases (subject to new restrictions and limits that we'll get into below). ... This means that mortgage insurance payments are no longer deductible, beginning with your 2017 return.