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?
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.
- 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)