Did you purchase a home last year and you had to take out private mortgage insurance (PMI)?

This will be the first time that you will be able to deduct the full premium on this year’s federal tax return if your adjusted gross income is $100,000 or less. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction. According to Kevin Schneider, president of the Mortgage Insurance Companies of America (MICA), this year’s tax break could be worth $350.00 per taxpayer - an annual deduction that qualified homeowners can take each year through 2010.

Congress approved this tax deduction in late 2006, which applied to loans with mortgage insurance that closed in 2007. Congress also voted to extend the mortgage insurance tax deduction through 2010, this extension was part of the Mortgage Forgiveness Debt Relief Act of 2007.

Time is running out and so is your savings!

Monday, March 3^rd is fast approaching, if you are the one who bought or sold a homestead in 2007. It is the deadline to apply for homestead exemption and portability of Save Our Homes tax benefits, which is the difference between the assessed value and market value of a homestead due to the annual limit on increases in assessed value.

Homeowners, who already applied for a homestead exemption on their new homes, must complete a separate application by March 3, 2008.

To download an application form for portability, visit your local property appraiser’s web site or  Florida Department of Revenue web site.

    It may not be a whole lot of savings, but every little bit helps in this difficult financial time. Time is of the essence!