A provision that allows homeowners to treat mortgage insurance premiums the same as interest is in place through 2010.  The deduction applies to premiums paid or accrued (including for prepaid mortgage insurance) on acquisition (not on refinancing) debt for mortgage insurance.  

It is phased out for taxpayers (both single and married filing joint returns) with adjusted gross incomes over $100,000.

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Bob Kearns, Maryland Loan Officer