I've been trying to find out if PMI is deductible for rental properties, but I have not been able to come accross any concrete answer except related to onwe occupied properties. I noticed the 2007 Schedule E has a printed deduction for " Insurance (except PMI). Does anyone have the answer?
Thanks
From IRS publication 527 - Residential rental properties
You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). You can also deduct as a rental expense a part of other expenses that normally are non-deductible personal expenses, such as expenses for electricity, or painting the outside of your house.
NOTE - don't know where you were reading the caption for the insurance line item on Schedule E (Form 1040) ... was it in your tax software input screen? IRS Schedule E has an "insurance" line. PMI is treated as acquisition interest, subject to the limitations of such with respect to personal residences if applicable.
Actually the input line for insurance in Lacerte has this exception. This is what threw me off because in prior years it did not have this.
PMI is entered under the Interest category and Lacerte has input sections for it on Sch A and Sch E.
