It is not - unless you paid off the loan in full.
Any
interest (including original issue discount) accrued on a reverse mortgage is
not deductible until you actually pay it, which is usually when you pay off the
loan in full. Your deduction may be limited because a reverse mortgage loan
generally is subject to the limit on Home Equity Debt.
However, for reverse mortgages, you can
deduct amounts you paid for qualified mortgage insurance. The insurance must be
in connection with home acquisition debt- the deduction is not available for
the portion relating to other types of indebtedness, such as home equity
indebtedness. Also, the insurance contract must have issued after 2006.
For more information, please refer
to IRS
publication 936, page 8.
