HR 149 IH

To amend the Internal Revenue Code of 1986 to allow a deduction for premiums on private mortgage insurance.

January 3, 2001

Mr. PASCRELL introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow a deduction for premiums on private mortgage insurance.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. PREMIUMS ON PRIVATE MORTGAGE INSURANCE.

(a) IN GENERAL- Paragraph (3) of section 163(h) of the Internal Revenue Code of 1986 (relating to qualified residence interest) is amended by adding at the end the following new subparagraph:

`(E) PRIVATE MORTGAGE INSURANCE PREMIUMS TREATED AS INTEREST- Premiums paid or accrued for private mortgage insurance (as defined by section 2 of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as in effect on the date of the enactment of this subparagraph) by a taxpayer in connection with indebtedness with respect to a qualified residence of the taxpayer shall be treated for purposes of this subsection as qualified residence interest.'

(b) EFFECTIVE DATE- The amendment made by this section shall apply to premiums paid after December 31, 2000.

END