Is PMI Deductible On A Rental House?
I know it isn't, of course, on my own home. But what about a house I'm buying to rent?
If it is deductible, is it considered an "insurance" cost on my Schedule E?
Chip
[addsig]
Yes, I usually put it under "insurance".
My tax man and I have argued about this, but he insists PMI is not deductible. I paid him 550 to do my taxes last year, but it was about half an inch thick. I have to trust him. he does taxes for several investors.
Good luck with buying yoour house.
I didn't have time to dig too deep but found this on the IRS web site under FAQ for rental property:
Can you deduct Private Mortgage Insurance (PMI) premiums on rental property? If so, which line item on Schedule E?
Yes. You can deduct Private Mortgage Insurance premium on line 9 of Form 1040, Schedule E (PDF), Supplemental Income and Loss. Write "PMI" on the dotted line.
References:
Publication 527, Residential Rental Property
Form 1040, Schedule E (PDF), Supplemental Income and Loss
Instructions for Form 1040, Schedule E, Supplemental Income and Loss
Thanks, Blueford for that reference. I missed that in my search of IRS site, but I'll go back and look for it.
Chip