Pregunta Can you deduct mortgage insurance premiums on rental property? Respuesta In general, you can deduct mortgage insurance premiums in the year paid. However, if you prepay the premiums for more than one year in advance, for each year of coverage you can deduct only the part of the premium payment that will apply to that year. Report the deduction on line 9 of Schedule E (Form 1040), Supplemental Income and Loss. Información adicional Is my residential rental income taxable and/or are my expenses deductible? Publication 527, Residential Rental Property (Including Rental of Vacation Homes) Categoría Sale or trade of business, depreciation, rentals Subcategoría Rental expenses