Tax Law Changes

Mortgage Insurance Premiums

The election to deduct qualified mortgage insurance premiums (PMI) paid under a mortgage insurance contract issued after December 31, 2006, in connection with a home acquisition debt that was secured by a first or second home has been made permanent. The deduction is claimed on Schedule A (Form 1040).

Mortgage Interest Deduction

Permanently disallows mortgage interest deduction for home equity indebtedness and limits mortgage interest deduction for acquisition indebtedness to $750,000 ($375,000 for married filing separately).

Energy Efficient Home Improvement Credit

Eliminated for expenditures and improvements placed in service after 2025.

Casualty Loss Deduction (Out of Scope)

Permanently extends personal casualty loss deduction for federally declared disasters and expands the deduction to include state-declared disasters.