Solved: We paid $14,678.00 int. on reverse mortgage loan in 2018. We closed on the loan Oct. 2017. Got credit for interest paid in 2017 return , nothing on our 2018 return.
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

We paid $14,678.00 int. on reverse mortgage loan in 2018. We closed on the loan Oct. 2017. Got credit for interest paid in 2017 return , nothing on our 2018 return.

 
1 Best answer

Accepted Solutions
Highlighted
Level 3

We paid $14,678.00 int. on reverse mortgage loan in 2018. We closed on the loan Oct. 2017. Got credit for interest paid in 2017 return , nothing on our 2018 return.

Under the new tax laws, interest on a reverse mortgage is not deductible.  It is treated as a home equity line of credit. 


"Any interest (including original issue discount) accrued on a reverse mortgage is considered home equity debt and isn’t deductible." https://www.irs.gov/pub/irs-pdf/p936.pdf

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

View solution in original post

1 Reply
Highlighted
Level 3

We paid $14,678.00 int. on reverse mortgage loan in 2018. We closed on the loan Oct. 2017. Got credit for interest paid in 2017 return , nothing on our 2018 return.

Under the new tax laws, interest on a reverse mortgage is not deductible.  It is treated as a home equity line of credit. 


"Any interest (including original issue discount) accrued on a reverse mortgage is considered home equity debt and isn’t deductible." https://www.irs.gov/pub/irs-pdf/p936.pdf

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

View solution in original post

v
Privacy Settings