kanny34 Posted February 14, 2011 Report Share Posted February 14, 2011 My client Refinanced her principal residence in 2010 with another bank. The Form 1098 she received shows she paid Mortgage Insurance Premium. How do I treat this? Thanks Kay, EA Quote Link to comment Share on other sites More sharing options...
AnnieR Posted February 14, 2011 Report Share Posted February 14, 2011 Enter it on Line 13, schedule A. AnnieR Quote Link to comment Share on other sites More sharing options...
clay Posted February 14, 2011 Report Share Posted February 14, 2011 I have a client who purchased a house in 2010 and paid MIP at the closing. The mortgage has been sold two times since then and the 1098 from each lender has an amount for MIP. The closing statement had $2600 for MIP and this was reported on the 1098 from the original lender. The other 2 lenders have smaller amounts for MIP. The IRS instructions state that if the MIP is a prepayment, to amortize it over the life of the mortgage or 7 years, whichever is less. ATX does not have a worksheet that I can find that allows you to amortize and keep track from year to year - seems to be something we have to track on our own. Also, just as an aside, the clients who purchased the house are not married and the IRS instructions state the MIP has to be split between the owners. How are we or the client to know if the MIP amount is a prepayment? Is everyone taking the amount on the 1098 as being the amount that can be claimed in the current year? Quote Link to comment Share on other sites More sharing options...
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