Can I Deduct Mortgage Insurance Premiums From Rental Property?

A home for rent.
Image Credit: monkeybusinessimages/iStock/Getty Images

If you own rental property, you're allowed to deduct certain expenses from your rental income to lower your tax bill. These expenses include the mortgage insurance premiums you pay on the rental.


Claiming the Deduction

The deduction for insurance goes on line 9 of Schedule E, Supplemental Income and Loss. Combine your mortgage insurance premium costs with any other deductible insurance costs, such as property or liability insurance.

Prepaid Premiums

You're only allowed to deduct the amount of mortgage insurance premiums paid for the current calendar year. You must wait to deduct any premiums paid in advance until the calendar year that they actually cover. For example, if you pay your January 2016 premium in December 2015, you have to wait until you file your 2016 return to claim the deduction.


references & resources