Question

Reverse Mortgage

Forum|Forum|4 years ago
February 16, 2022
1 reply
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Why is it that Turbo Tax does not cover Reverse Mortage information. At least a paragraph or two to tell us why you find it unnecessary to inform the uninformed. If nothing is required to save on taxes or the IRS doesn't require anything please say so.

M

Mike9241

simple even if you pay interest, it's likely not deductible.

Interest (including original issue discount) accrued on a reverse mortgage isn't deductible until you actually pay it (usually when you pay off the loan in full). Also, a deduction of interest may be limited because a reverse mortgage generally is subject to the limit on home equity debt, which is not deductible unless the proceeds are used to buy, build, or substantially improve the home that secures the loan. For information on deducting mortgage interest and the debt limit that applies, see Publication 936, Home Mortgage Interest Deduction.