Reverse Mortgage Tax Deductable Question

DEAR BOB: As senior citizens, we are thinking of getting a reverse mortgage on our home for extra income. But are the upfront expenses and interest charged tax-deductible? -- Roberto L.

DEAR ROBERTO: Reverse-mortgage upfront expenses, such as the loan fee, as well as accrued interest over the life of the mortgage, are added to your reverse-mortgage balance. You don't have to pay these costs out of your pocket.

Because these expenses are not actually "paid," the IRS says they cannot be deducted until the reverse mortgage "matures" and is paid off in full when you eventually sell your home, permanently move out or die.

Source: Bob Bruss

To speak with a Reverse Mortgage Specialist about any tax implications or deductions, please call 1-888-973-8377.