MI Deduction Sought as Tax Bill Add-on

A bill to create a tax deduction for mortgage insurance premiums has 220 co-sponsors in the House, and advocates are trying to get it attached to a larger corporate tax bill that still has a chance of being enacted this year.House and Senate conferees are scheduled to meet Monday evening, and House Ways and Means Committee Chairman Bill Thomas, R-Calif., is expected to unveil his latest draft and consider other amendments. Advocates are lobbying to get the MIP deduction included in the chairman's draft. The Senate corporate tax bill includes an MI deduction, sponsored by Sen. Gordon Smith, R-Ore. Under the Smith proposal, homeowners with incomes of up to $100,000 could deduct all their mortgage insurance premiums paid during the 2005 tax year. Like many tax new provisions, the deduction expires after one year.