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Mortgage Insurance Tax Deductions

If you are a new homeowner or if you have owned your home for years, there are many home mortgage and property tax deductions available for both situations.

Previous Home Purchases

If you own your home you may deduct the interest on your home loan every single year that you own your home. You may also deduct the property taxes for every year you own your home.

Deadlines For Closing on Home Purchases Has Changed

The deadline for closing on the purchase of a new home was extended in July of 2010 from June 30 to September 30, 2010. You must meet the required deadlines to be able to claim the credit. By April 30, 2010 you must have bought or entered into a binding contract on a principal residence. You must close on the home on or before September 30, 2010. You will need to attach Form 5405 to your income tax return form to claim the home mortgage and property tax deduction credit.

If you are a homeowner, then you will most likely see the greatest tax benefits from itemizing your return.

You must itemize on your income tax return in order to take the following tax deductions:

• Mortgage Interest Tax

• Loan Origination Fees

• Points

• Mortgage Insurance Premiums

• Sale of Your Home

• Deductions on a Second Home

In order to claim these deductions you will need to have some documentation available to you such as your mortgage statement, property tax statement, mortgage insurance statement, and any loan closing information that lists the amount of fees paid to purchase your home.

The mortgage interest tax deduction has been a staple deduction for American taxpayers for many, many years. It is unlikely to disappear no matter what other tax changes are imposed. Yet, given the current mortgage crisis, the Wall Street bailout and credit scare, it is very likely that changes, significant changes in how the deduction is taken will occur in the next year or two. What these changes will be is hard to know at this point, but the tax deduction for home mortgage loan interest  is likely to become one of the major political footballs of the next Congress.

TurboTax Online offers step by step instructions on claiming your home mortgage property tax related deductions.