Qualified mortgage insurance premiums entered on the depreciation screen won’t flow to Schedule A, line 8d. See the steps below if you want the program to calculate and track amortization.
To enter premiums for Schedule A, line 8d:
- Go to Screen 25, Itemized Deductions.
- Scroll down to the Interest section.
- Enter the Qualified mortgage insurance premiums paid on post 12/31/06 contracts.
To have the program track amortization:
- Go to Screen 22, Depreciation.
- Enter the following information in the grid:
- Description of Property
- Date placed in service
- Cost or Basis
- Select 17=Form 4562 only.
- Choose 91=Straight Line for this field.
- Scroll down to the Regular Depreciation subsection.
- Enter the Life or class life (recovery period automatic).
- Enter the Amorization code section (Ctrl +T).
- Code 163 isn't in the list, but you can manually type it in or select a similar code. See IRC Section 163 for more information.
- Enter any Prior depreciation/amortization, if applicable.
The mortgage insurance premiums will be included on depreciation reports, but won't flow to the Schedule A automatically.
You can use this method to figure the current year amortization amount to enter in Qualified mortgage insurance premiums paid on post 12/31/06 contracts on the Schedule A screen.