Rental Expenses versus Passive Activity Losses (PALs)
Question: Can you deduct private mortgage insurance (PMI) premiums on rental property? If so, which line item on Schedule E?
Answer:
In general, you can deduct PMI premiums in the year paid. However, if you prepay PMI premiums for more than 1 year in advance, for each year of coverage you can deduct only the part of the PMI payment that will apply to that year. A deduction for PMI premiums is reported on line 9 of Schedule E (Form 1040) (PDF), Supplemental Income and Loss.
Additional Information:
- Publication 527, Residential Rental Property
- Instructions for Schedule E (Form 1040) (PDF), Supplemental Income and Loss
Category: Sale or Trade of Business, Depreciation, Rentals
Subcategory: Rental Expenses versus Passive Activity Losses (PALs)
