Close desktop login portal

Client Login

Select one of the portals below and login with your credentials

Technology Solutions

Richey May Technology Solutions provides the full spectrum of transformative solutions for your business.

Learn More

Business Advisory

Specializing in Mergers & Acquisitions, management reporting and operational improvements for you business.

Learn More

Technology Solutions

Richey May Technology Solutions provides the full spectrum of transformative solutions for your business.

Learn More

Business Advisory

Specializing in Mergers & Acquisitions, management reporting and operational improvements for you business.

Learn More

Contact Us

Richey May Headquarters
9605 S. Kingston Ct. Suite 200
Englewood, CO 80112
Directions
303-721-6232

Question or comments?  Click here to fill out our inquiry form.

Technology Solutions

 

Richey May Technology Solutions provides the full spectrum of transformative solutions for your business.

Learn More

Business Advisory

Specializing in Mergers & Acquisitions, management reporting and operational improvements for you business.

Learn More

Technology Solutions

 

Richey May Technology Solutions provides the full spectrum of transformative solutions for your business.

Learn More

Business Advisory

Specializing in Mergers & Acquisitions, management reporting and operational improvements for you business.

Learn More

Contact Us

Richey May Headquarters
9605 S. Kingston Ct. Suite 200
Englewood, CO 80112
Directions
303-721-6232

Question or comments?  Click here to fill out our inquiry form.

Mobile menu toggle
Back to menuBack to menu
Richey May Headquarters
9605 S. Kingston Ct. Suite 200
Englewood, CO 80112
Directions
303-721-6232
Mortgage

Deductibility of Mortgage Insurance Premiums Extended for 2017 Tax Year

Articles by: Richey May, Feb 14, 2018

February 2018 – On February 9th, President Trump signed H.R. 1892, the “Bipartisan Budget Act of 2018”. H.R. 1892 includes the extension of over 30 tax provisions that had previously expired after December 31, 2016, commonly referred to as the “extenders.” Included in this extenders package is the deductibility of Mortgage Insurance Premiums (MIP).

Mortgage Insurance Premiums are reported on Forms 1098, which are required to be issued by January 31st each year. The 2017 instructions for Form 1098 state that MIP should only be reported in Box 5 if section 163(h)(3)(E) applies for the applicable tax year and, therefore, would not have been included in a timely-filed Form 1098. However, now that the extenders package has passed, MIP is deductible for the 2017 tax year (subject to phase-out at the individual level), and issuers should issue corrected Forms 1098 to include in Box 5 the amount of MIP paid in the 2017 tax year.

If you have already filed your 2017 Forms 1098 and excluded the MIP paid in 2017, corrected Forms 1098 will need to be issued to borrowers (where applicable). If the originally-filed Forms 1098 included the reporting of MIP paid in 2017 in error, no action will be required. If you have any questions regarding this issue, please contact a Richey May tax professional or consult your tax advisor.

The IRS is reviewing the legislation signed on February 9th that retroactively extended and modified numerous tax provisions covering 2017. They are assessing these significant changes in the tax law and are working to determine next steps. The IRS will provide additional information as quickly as possible for affected taxpayers and the tax community. While we expect that corrected Forms 1098 will be required by the IRS, we believe that most mortgage companies will want to issue corrected Forms 1098 to inform their borrowers of this change regardless of IRS guidance to ensure that that their borrowers are able to take advantage of the deduction, which, for many homeowners who pay MIP, could be significant.

We will continue to monitor these changes and provide you with more details as they become available. You can also contact us with any questions you may have.