Deductibility of Mortgage Insurance Is Dropped

A provision that would have made mortgage insurance premiums tax deductible was eliminated in the last hours from the congressional tax bill quickly signed into law by the President over the Memorial Day holiday. The provision would have cost about $615 million a year but was scrapped in order to make room for other provisions. The Senate had approved the provision, which would have limited the deduction borrowers who earn $100,000 or less.