Below are a couple of tax deductions, one new and one increased, that you want to make sure you take advantage of if you are eligible:
Private Mortgage Insurance or PMI, is deductible if you purchased a home or refinanced and paid for PMI in 2007, the first year this has been the case. In the past this was not deductible. PMI is mortgage insurance paid by the borrower if you take out a loan for more than 80% of the property’s value or sale price. This deduction is only available to taxpayers with an AGI less than $100,000, and a partial credit is available for incomes between $100k and $109k. You are not eligible if your AGI is $110k or above. This law was originally passed for 2007 only, and originally applied to mortgages or refinances completed in 2007 only, but President Bush extended it for three more years , through 2010, this past December.
Mileage Rate- If you are able to deduct your car mileage for work usage (if you are self-employed, including a side business), you can deduct either your actual costs or 48.5 cents per mile, up from 44.5 cents per mile for tax year 2006.
(Wait, didn’t gas prices go up about 30% this year?)
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Very good points you’ve brought up here. One thing to make sure on the PMI deduction is there are income limits on this deduction. It phases out if you go over the cap.
Great post!