Tax Experts
Deducting Interest on a Reverse Mortgage
By Kevin McCormally, Editorial Director, Kiplinger.com
March 22, 2008
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Q: I have a reverse mortgage, will I get credit for what interest the bank charged in 2007? Or must it wait until after I am deceased? -- D. Dormer
Kevin's Answer:
Since interest on a reverse mortgage is not paid until the loan is paid off (after you leave the home or die), there is no annual income tax deduction as the interest accrues.
The deduction would be available only for the year when the loan is repaid . . . with the interest being paid at that time.
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