Updated almost 7 years ago on . Most recent reply
Taxes on rental properties
My wife and I are ready to begin investing. I have researched and studied up on all of the tactics and finances of everything, but something I just recently thought of was the taxes. Can you deduct mortgage insurance on a rental property? What are the tax ramifications of a rental?
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
Unless it used to be your primary, you probably won't have PMI since conventional investment loans require at least 20% down.
I don't do FHA loans so know nothing about them. I won't subject myself to MIP forever just to put less down. FHA loans are extremely expensive over their lifetime.
If there is an amount in the Form 1098, Box 5 (Mortgage Insurance Premiums) you get from the bank, I would include it, yes.
But check with a pro and read the articles linked in Kyle's post above.