Question:

Is the interest added to a hecm reverse mortgage deductible on federal income tax return??

by Guest57770  |  earlier

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Is the interest added to a hecm reverse mortgage deductible on federal income tax return??

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2 ANSWERS


  1. You only get a tax deduction for home interest you are liable for "that you actually pay".


  2. A reverse mortgage typically doesn't give anyone a deduction.

    While interest accrues each year the loan is outstanding, the homeowner doesn't pay any of it as long as they live in the home.  Since they don't pay, it there is no deduction.

    If they move and the loan becomes due, they may have a deduction that year after the loan is paid.  If they die, they don't get a deduction because the money was paid after they died...and their estate probably won't be able to use the deduction on the 1041....

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