Hello, I closed a 30 yr FHA loan in August 2009 and paid the upfront FHA Insurance Premium (around 1.5% of loan). Currently my monthly payments include Principal + Interest + FHA Monthly Insurance Premium + Property Tax Impound Account Payment.

Among these components, I wanted to enquire with the experts here as to which are tax-deductible when I file my taxes next year -

1) Principal + Interest - This I am sure is tax deductible

2) Property Tax - I understand that the actual Property tax paid by lender from my impound account is also tax deductible

3) FHA Monthly Insurance Premium - is this tax deductible ??

4) Upfront FHA premium - the reason for this post is the big question I had regarding whether this component is also tax deductible? It was close to 5K so I hope it is.

I would appreciate any feedback.

AP:

Among these components, I wanted to enquire with the experts here as to which are tax-deductible when I file my taxes next year -

1) Principal + Interest - This I am sure is tax deductible -

2) Property Tax - I understand that the actual Property tax paid by lender from my impound account is also tax deductible

3) FHA Monthly Insurance Premium - is this tax deductible ??

4) Upfront FHA premium - the reason for this post is the big question I had regarding whether this component is also tax deductible? It was close to 5K so I hope it is.

1. interest is deductible not principal

2. property taxes are deductible

3 & 4. are deductible subject to income limitations - check with your tax preparer to see if you qualify or take a look at this IRS information http://www.irs.ustreas.gov/publications/p936/ar02.html

No, I dont believe so, as it is an "upfront" cost, however there is a refunding table for those that payoff early, thereby Dont think you can i.e. deduct the UFMIP of 1.750 in a calendar year.  Best bet is to check with your CPA, Tax Preparer or even the IRS.