I 
109TH CONGRESS 
1ST SESSION H. R. 3098 
To amend the Internal Revenue Code of 1986 to allow a deduction for 
premiums on mortgage insurance, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2005 
Mr. RYAN of Wisconsin (for himself, Mr. JEFFERSON, and Mr. CANTOR) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
deduction for premiums on mortgage insurance, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mortgage Insurance 
Fairness Act of 2005’’. 
SEC. 2. PREMIUMS FOR MORTGAGE INSURANCE. 
(a) IN GENERAL.—Paragraph (3) of section 163(h) 
of the Internal Revenue Code of 1986 (relating to quali-
fied residence interest) is amended by adding after sub-
paragraph (D) the following new subparagraph: 
‘‘(E) MORTGAGE
INSURANCE
PREMIUMS 
TREATED AS INTEREST.— 
‘‘(i) IN GENERAL.—Premiums paid or 
accrued for qualified mortgage insurance 
by a taxpayer during the taxable year in 
connection with acquisition indebtedness 
with respect to a qualified residence of the 
taxpayer shall be treated for purposes of 
this subsection as qualified residence inter-
est. 
‘‘(ii) PHASEOUT.—The amount other-
wise allowable as a deduction under clause 
(i) shall be reduced (but not below zero) by 
10 percent of such amount for each $1,000 
($500 in the case of a married individual 
filing a separate return) (or fraction there-
of) that the taxpayer’s adjusted gross in-
come 
for 
the 
taxable 
year 
exceeds 
$100,000 ($50,000 in the case of a mar-
ried individual filing a separate return).’’. 
(b) DEFINITION AND SPECIAL RULES.—Paragraph 
(4) 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 subparagraphs: 
‘‘(E) 
QUALIFIED
MORTGAGE
INSUR-
ANCE.—The term ‘qualified mortgage insur-
ance’ means— 
‘‘(i) mortgage insurance provided by 
the Veterans Administration, the Federal 
Housing Administration, or the Rural 
Housing Administration, and 
‘‘(ii) 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). 
‘‘(F) SPECIAL RULES FOR PREPAID QUALI-
FIED
MORTGAGE
INSURANCE.—Any amount 
paid by the taxpayer for qualified mortgage in-
surance that is properly allocable to any mort-
gage the payment of which extends to periods 
that are after the close of the taxable year in 
which such amount is paid shall be chargeable 
to capital account and shall be treated as paid 
in such periods to which so allocated. No deduc-
tion shall be allowed for the unamortized bal-
ance of such account if such mortgage is satis-
fied before the end of its term. The preceding 
sentences shall not apply to amounts paid for 
qualified mortgage insurance provided by the 
Veterans Administration or the Rural Housing 
Administration.’’. 
SEC. 3. INFORMATION RETURNS RELATING TO MORTGAGE 
INSURANCE. 
Section 6050H of the Internal Revenue Code of 1986 
(relating to information returns relating to mortgage in-
terest) is amended by adding at the end the following new 
subsection: 
‘‘(h) RETURNS RELATING TO MORTGAGE INSURANCE 
PREMIUMS.— 
‘‘(1) IN
GENERAL.—The Secretary may pre-
scribe, by regulations, that any person who, in the 
course of a trade or business, receives from any indi-
vidual premiums for mortgage insurance aggregating 
$600 or more for any calendar year shall make a re-
turn with respect to each such individual. Such re-
turn shall be in such form, shall be made at such 
time, and shall contain such information as the Sec-
retary may prescribe. 
‘‘(2) STATEMENT TO BE FURNISHED TO INDI-
VIDUALS WITH RESPECT TO WHOM INFORMATION IS 
REQUIRED.—Every person required to make a re-
turn under paragraph (1) shall furnish to each indi-
vidual with respect to whom a return is made a writ-
ten statement showing such information as the Sec-
retary may prescribe. Such written statement shall 
be furnished on or before January 31 of the year 
following the calendar year for which the return 
under paragraph (1) was required to be made. 
‘‘(3) SPECIAL
RULES.—For purposes of this 
subsection— 
‘‘(A) rules similar to the rules of sub-
section (c) shall apply, and 
‘‘(B) 
the 
term 
‘mortgage 
insurance’ 
means— 
‘‘(i) mortgage insurance provided by 
the Veterans Administration, the Federal 
Housing Administration or the Rural 
Housing Administration, and 
‘‘(ii) 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.’’.
SEC. 4. EFFECTIVE DATE. 
The amendments made by this Act shall apply to 
amounts paid or accrued after the date of enactment of 
this Act in taxable years ending after such date. 
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