Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. PREMIUMS FOR 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 after subparagraph (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 interest.
''(ii) Phaseout.--The amount otherwise
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 thereof) that the
taxpayer's adjusted gross income for the
taxable year exceeds $100,000 ($50,000 in the
case of a married 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 insurance.--The term
'qualified 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).
''(F) Special rules for prepaid qualified mortgage
insurance.--Any amount paid by the taxpayer for
qualified mortgage insurance that is properly allocable
to any mortgage 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 deduction shall be allowed for
the unamortized balance of such account if such
mortgage is satisfied 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. 2. INFORMATION RETURNS RELATING TO MORTGAGE INSURANCE.

Section 6050H of the Internal Revenue Code of 1986 (relating to
information returns relating to mortgage interest) is amended by adding
at the end the following new subsection:
''(h) Returns Relating to Mortgage Insurance Premiums.--
''(1) In general.--The Secretary may prescribe, by
regulations, that any person who, in the course of a trade or
business, receives from any individual premiums for mortgage
insurance aggregating $600 or more for any calendar year, shall
make a return with respect to each such individual. Such return
shall be in such form, shall be made at such time, and shall
contain such information as the Secretary may prescribe.
''(2) Statement to be furnished to individuals with respect
to whom information is required.--Every person required to make
a return under paragraph (1) shall furnish to each individual
with respect to whom a return is made a written statement
showing such information as the Secretary 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 subsection (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. 3. 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.
Solution:
Amends the Internal Revenue Code to allow the deduction of premiums for mortgage insurance. Provides for the phaseout of such deduction based on income.