I have a reverse mortgage on the house. Every year there is a huge loss in my value from interest charged. Can I deduct this loss (interest) as a loss?

[skw401]

If my stocks or other investments go up or down i can list those. So I am asking to apply the same principles here. No? Yes?

[KarenL2 · Accepted solution]

No.  You cannot take a loss of value on your personal residence.  However, when you sell, you will be able to deduct that large interest amount in the year of sale or when the loan is paid in full.

However, for reverse mortgages, you can deduct amounts you paid for qualified mortgage insurance.  You can deduct any real estate taxes you paid as you would normally.

For more information, please refer to IRS publication 936, page 5.