Owner occupied FHA loan MIP Tax deductible?

[Cory Bilyeu]

Hello,

I just bought my first two family home this past year (2020), and it owner occupied. I bought the home with an FHA loan to put down as little as I could. I have a question about the upfront Mortgage insurance premiums I paid when closing on the home. The MIP was about $3300 and I am wondering how to treat this cost. Is the MIP tax deductible? Or do I add it to my cost basis for the property? Is half of it tax deductible? (Since I am occupying the residence).

I have a lot to learn for the tax management side of the property, but luckily I know the value of good documentation and have been keeping a great paper trail of all costs so far.

Appreciate any guidance. Thanks.