New Deductions Help Homeowners

Uncle Sam is giving homeowners an additional tax deduction on their 2007 federal income taxes.

Through a new federal tax deduction, homeowners will be able to deduct mortgage premiums paid in connection with home acquisition debt on qualified home mortgage insurance.

To qualify for the deduction, a homeowner’s mortgage insurance must be provided by either the U.S. Veteran’s Administration, the Federal Housing Administration, the Rural Housing Administration or a private mortgage insurance company.

Only mortgage insurance premiums paid from Jan. 1 to Dec. 31 are eligible for the deduction.

Linda Smith of H&R Block in Fayetteville, said the new deduction is not listed on homeowner’s mortgage statements and has not become a well-known deduction among most mortgage companies and public accountants.