Are fees and interest on a Reverse mortgage deductible ?

[AmyC · Accepted solution]

Not anymore. Those fees do not relate to purchasing the home. About Publication 936, Home Mortgage Interest Deduction page 5 states:

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 isn't taxable. Generally, any interest (including original issue discount) accrued on a reverse mortgage is considered interest on home equity debt and isn’t deductible.