Money paid into a reverse mortgage

[Fmansourza]

Hi, 

we paid over 70 K into our home to be able to get a reverse mortgage. We had to pay almost $7000 in mortgage insurance. I think all of our closing costs came to $11,000 is any of that tax deductible? Thx

[KrisD15]

The Private Mortgage Insurance might be, but only up to the amount that applies to what was still owed. It does not include any cash taken out for anything other than improving the house. 

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[Fmansourza]

Hi, 

no cash was taken. We had to put $ in to own 50% to qualify. It was about 75 K. 
This is the first year I will do our taxes using turbo tax. Just wanted to make sure what was deductible 

thanks 

[KrisD15]

Yes, I see. You can claim the PMI as interest. 

[Fmansourza]

Thank you! 
also we must now pay out property taxes twice a year and our house insurance . 
can these be deducted? 
thanks! 

[DMarkM1]

The property taxes are deductible if you are itemizing.  The home insurance is not.  Here is a helpful article on homeowner deductions. 

[jamsonsmith2430]

If you take out a reverse mortgage, the application fee, mortgage insurance, and closing costs paid up-front aren't tax deductible until actually paid off (usually when you repay the reverse mortgage). Therefore, you will be unable to deduct the interest on the reverse mortgage until it is actually paid off (at some point). In addition, Generally, you will not be able to deduct your mortgage insurance premiums and most of your closing costs.

For further details, see this page: 👉 https://reverse.mortgage/interest-tax-deduction

Regardless of whether you can deduct the amount you sent in to a reverse mortgage or not, it's always best to save your closing documents and seek advice from a certified public accountant (CPA) regarding your individual situation.