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DarlaVDelDuca
Returning Member

Reverse Mortgage

Can I use their Annual Statement information as if it were a 1098?

3 Replies
ColeenD3
Employee Tax Expert

Reverse Mortgage

No. 

Proceeds on a reverse mortgage are not taxable.  In most instances, reverse mortgage interest is not deductible.  From IRS Publication 936

 

"Reverse mortgages.   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. With a reverse mortgage, you retain title to your home. Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. 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. "

 

@DarlaVDelDuca

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traderboo
New Member

Reverse Mortgage

I have read your response regarding whether or not an annual accounting report cannot be used in lieu of a form 1098. However, I'm only interested in recording the MIP figure on my Fed tax return. Is that doable, and if so, where or how do I enter on Turbo Tax? Much obliged.

MarilynG1
Employee Tax Expert

Reverse Mortgage

@traderboo From Expert @KrisD15:

 

"The reverse mortgage insurance would not be delectable because it is not paid to build, purchase or improve your home.  

Please remember that a reverse mortgage is not a loan on your home, in fact quite the opposite; therefore the insurance charge is not a deduction for you. This is not the same as Private Mortgage Insurance which is linked to you making home loan payments. It is insuring that you receive the payments."

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