Mortgage Insurance on Reverse Mortgage

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Subject Author Date Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-13-2009  Re: Mortgage Insurance on Reverse Mortgage Mark Bole 03-13-2009  Re: Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-22-2009  Re: Mortgage Insurance on Reverse Mortgage Arthur Kamlet 03-22-2009  Re: Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-23-2009  Re: Mortgage Insurance on Reverse Mortgage Arthur Kamlet 03-24-2009  Re: Mortgage Insurance on Reverse Mortgage Mark Bole 03-22-2009  Re: Mortgage Insurance on Reverse Mortgage Bob Sandler 03-22-2009  Re: Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-23-2009  Re: Mortgage Insurance on Reverse Mortgage Bob Sandler 03-15-2009  Re: Mortgage Insurance on Reverse Mortgage lotax 03-21-2009  Re: Mortgage Insurance on Reverse Mortgage scott s. 03-21-2009  Re: Mortgage Insurance on Reverse Mortgage lotax 03-21-2009  Re: Mortgage Insurance on Reverse Mortgage lotax 03-21-2009  Re: Mortgage Insurance on Reverse Mortgage Han 03-22-2009  Re: Mortgage Insurance on Reverse Mortgage Dick Adams 03-23-2009  Re: Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-24-2009  Re: Mortgage Insurance on Reverse Mortgage Dick Adams 03-24-2009  Re: Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-24-2009  Re: Mortgage Insurance on Reverse Mortgage Dick Adams 03-24-2009  Re: Mortgage Insurance on Reverse Mortgage Stuart A. Bronstein 03-24-2009  Re: Mortgage Insurance on Reverse Mortgage KEBSCHULLW 03-25-2009  Re: Mortgage Insurance on Reverse Mortgage lotax 03-30-2009
Posted by KEBSCHULLW on March 13, 2009, 3:45 pm Please log in for more thread options Client has 1098 for a Reverse Mortgage that shows over $5000 in Mortgage Insurance in Box 4. Is this deductible and if so over what time period? As I understand it, money was taken from the reverse mortgage to pay off first and second mortgages. This all went down late in 2008. WDK -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Mark Bole on March 13, 2009, 7:47 pm Please log in for more thread options KEBSCHULLW@aol.com wrote: > Client has 1098 for a Reverse Mortgage that shows over $5000 in > Mortgage Insurance in Box 4. Is this deductible and if so over what > time period? As I understand it, money was taken from the reverse > mortgage to pay off first and second mortgages. This all went down > late in 2008. If the debt re-financed was acquisition debt, the insurance on that amount could be deducted just like interest, since the insurance contract was issued in 2008. However if any of the $5K was pre-paid insurance for a future tax year, it should be allocated, see Pub 936. -Mark Bole -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by KEBSCHULLW on March 22, 2009, 6:32 pm Please log in for more thread options > KEBSCHU...@aol.com wrote: > > Client has 1098 for a Reverse Mortgage that shows over $5000 in > > Mortgage Insurance in Box 4. �Is this deductible and if so over what > > time period? �As I understand it, money was taken from the reverse > > mortgage to pay off first and second mortgages. �This all went down > > late in 2008. > > If the debt re-financed was acquisition debt, the insurance on that > amount could be deducted just like interest, since the insurance > contract was issued in 2008. �However if any of the $5K was pre-paid > insurance for a future tax year, it should be allocated, see Pub 936. > > -Mark Bole > Mark, I think the insurance amount entered in Box 4 on the W-2 is deductible, otherwise it wouldn't be in Box 4. I read something about deducting it over 84 months. I asked client to bring in the reverse mortgage papers so I can see what is going on. Now if someone could get what's reported in Box 14 on a W-2 sorted out or identified I may have a chance at maintaining my sanity. It's just great when some of the items are deductible (medical insurance paid by employee) and others aren't (like state disability insurance taxes). Cheers, WDK -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Arthur Kamlet on March 22, 2009, 8:04 pm Please log in for more thread options >> KEBSCHU...@aol.com wrote: >> > Client has 1098 for a Reverse Mortgage that shows over $5000 in >> > Mortgage Insurance in Box 4. �Is this deductible and if so over what >> > time period? �As I understand it, money was taken from the reverse >> > mortgage to pay off first and second mortgages. �This all went down >> > late in 2008. >> >> If the debt re-financed was acquisition debt, the insurance on that >> amount could be deducted just like interest, since the insurance >> contract was issued in 2008. �However if any of the $5K was pre-paid >> insurance for a future tax year, it should be allocated, see Pub 936. >> >> -Mark Bole >> >Mark, > >I think the insurance amount entered in Box 4 on the W-2 is >deductible, otherwise it wouldn't be in Box 4. I read something about Is that a typo? >deducting it over 84 months. I asked client to bring in the reverse >mortgage papers so I can see what is going on. > >Now if someone could get what's reported in Box 14 on a W-2 sorted out >or identified I may have a chance at maintaining my sanity. It's just >great when some of the items are deductible (medical insurance paid >by employee) and others aren't (like state disability insurance >taxes). -- ArtKamlet at a o l dot c o m Columbus OH K2PZH -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by KEBSCHULLW on March 23, 2009, 5:57 pm Please log in for more thread options On Mar 22, 8:04 pm, kam...@panix.com (Arthur Kamlet) wrote: > > >> KEBSCHU...@aol.com wrote: > >> > Client has 1098 for a Reverse Mortgage that shows over $5000 in > >> > Mortgage Insurance in Box 4. Is this deductible and if so over what > >> > time period? As I understand it, money was taken from the reverse > >> > mortgage to pay off first and second mortgages. This all went down > >> > late in 2008. > > >> If the debt re-financed was acquisition debt, the insurance on that > >> amount could be deducted just like interest, since the insurance > >> contract was issued in 2008. However if any of the $5K was pre-paid > >> insurance for a future tax year, it should be allocated, see Pub 936. > > >> -Mark Bole > > >Mark, > > >I think the insurance amount entered in Box 4 on the W-2 is > >deductible, otherwise it wouldn't be in Box 4. I read something about > > Is that a typo? Not exactly, I called IRS about a week ago and I believe they said it was not deductible and certainly not all deductible for tax year 2008. I just came across this in the IRC. Section 163(h)(3)(E) E) Mortgage insurance premiums treated as interest (i) In general Premiums paid or accrued for qualified mortgage insurance by a taxpayer during the taxable year in connection with acquisition indebtedness with respect to a qualified residence of the taxpayer shall be treated for purposes of this section as interest which is qualified residence interest. snip Section 163(h)(4)(E-F) (E) Qualified mortgage insurance The term “qualified mortgage insurance” means— (i) mortgage insurance provided by the Veterans Administration, the Federal Housing Administration, or the Rural Housing Administration, and (ii) private mortgage insurance (as defined by section 2 of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as in effect on the date of the enactment of this subparagraph). (F) Special rules for prepaid qualified mortgage insurance Any amount paid by the taxpayer for qualified mortgage insurance that is properly allocable to any mortgage the payment of which extends to periods that are after the close of the taxable year in which such amount is paid shall be chargeable to capital account and shall be treated as paid in such periods to which so allocated. No deduction shall be allowed for the unamortized balance of such account if such mortgage is satisfied before the end of its term. The preceding sentences shall not apply to amounts paid for qualified mortgage insurance provided by the Veterans Administration or the Rural Housing Administration. The last sentence above is not reflected in IRS Pub 936 as it would apply to mortgage insurance on a reverse mortgage that client has. Therefore my conclusion, at least for today, is the entire $5000+ is deductible for 2008. > > >deducting it over 84 months.  I asked client to bring in the reverse > >mortgage papers so I can see what is going on. > > ArtKamlet  at  a o l dot c o m  Columbus OH  K2PZH Cheers, WDK -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Mortgage Insurance as Rental Expense January 13, 2007, 2:12 am Deductibility of Upfront Mortgage Insurance January 25, 2010, 7:47 pm rental income + rental mortgage + rental mortgage interest - dazed /confused April 11, 2006, 3:50 am Tax Mortgage question July 12, 2007, 8:51 pm Mortgage Advice September 10, 2007, 6:58 pm mortgage interest March 3, 2009, 10:15 pm mortgage for non-profit May 13, 2009, 11:35 am Mortgage Interest January 7, 2010, 3:07 pm Mortgage Credit on Points February 4, 2008, 6:42 pm Mortgage interest deduction June 15, 2006, 7:07 am