Level 2

Question

What, if any, fees are tax deductible in obtaining a reverse mortgage?

Forum|Forum|1 year ago
October 4, 2024
3 replies
16 views

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ProSeries Professional

sjrcpa

Level 15

None.

Same as for a nonreverse mortgage.

The more I know the more I don’t know.

BobKamman

Level 15

What fees were charged? "Loan origination fees" ? (Points)

L

LJC61Author

Level 2

Hi,

Origination fees and mortgage insurance premiums. There was no cash out received on this, we had to pay money in to close.

Thanks for any guidance!

Lisa

IRonMaN

Level 15

Do you get to deduct any of those with a regular mortgage?

Slava Ukraini!

D

diyamiraz

Level 2

To be perfectly clear, the majority of costs associated with obtaining a reverse mortgage, such as origination fees and closing costs, are not tax deductible. The only deductible part is the interest, but only if and when you pay it, which ordinarily happens when you repay the loan after you either move out or die. The Internal Revenue Service considers it differently than usual mortgage interest, so it’s a good idea to accurately track the interest you can possibly deduct. Based on my research this guide on reverse mortgage interest deductions quite helpful to assist me in determining which interest can be possibly deducted and which interest cannot be deducted.

BobKamman

Level 15

Not the first time someone has tried to spam that website

Taxprohere

Level 7

@BobKamman , do you mean someone who coincidentally signed up in this forum same day, and posting a link to another website? 🤔 🤔

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