☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 9:20:12 PM

Are any of the costs upfront for the new Reverse Mortgage we got in May 2018 deductible?

This is a reverse mortgage.

0 1 252
1 Best answer
Level 3
Jun 4, 2019 9:20:14 PM

No, neither the costs nor the interest is deductible.  A reverse mortgage is now treated as a home equity line of credit which is also not deductible. 

"Any interest (including original issue discount) accrued on a reverse mortgage is considered home equity debt and isn’t deductible." https://www.irs.gov/pub/irs-pdf/p936.pdf

1 Replies
Level 3
Jun 4, 2019 9:20:14 PM

No, neither the costs nor the interest is deductible.  A reverse mortgage is now treated as a home equity line of credit which is also not deductible. 

"Any interest (including original issue discount) accrued on a reverse mortgage is considered home equity debt and isn’t deductible." https://www.irs.gov/pub/irs-pdf/p936.pdf