Question

I refinanced my Reverse Mort. Loan (HECUM). I took cash from the equity to pay off credit card debt. Must I reduce the Interest deduction for that amount?

Forum|Forum|5 years ago
February 26, 2021
1 reply
0 views

I refinanced a Reverse Mortgage Loan (HECUM) with another Reverse Mortgage Loan. It is not a Home Equity loan, but allows me to draw cash from the equity.

TurboTax Deluxe Online

T

ThomasM125

You can only deduct mortgage interest that you pay, not interest that is accrued. So, if you pay interest on the loan it may be partially or wholly deductible.

Once you borrow money and use it for personal expenses, then the portion of the interest associated with that portion of the debt is not deductible. So, for instance, if ten percent of your mortgage balance is associated with money you used to pay credit card debt, then ten percent of the mortgage interest you paid would not be deductible.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"