Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
DarlaVDelDuca
Returning Member

Reverse Mortgage

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

3 Replies
ColeenD3
Expert Alumni

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

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."

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v