My mother passed away last year, and she had a partial reverse mortgage on her house. I inherited the house to live in as my primary residence, I'm the only child. I inherited the house, then refied the reverse mortgage into a traditional mortgage in my name. The refi paid off the reverse mortage. The reverse mortgage company sent a 1098 in the name of my Mom's estate with her SSN. It shows the full interest paid off and all that. Technically her estate did not pay off the mortgage, the refi in my name did. She was however obviously listed as the original borrower. How do I list that on taxes? Should I be eligible for for any deductions as my refi paid off the reverse mortgage? Or does it go on her final year taxes, or separate estate taxes?
Any help or insight would be so appreciated as this is very confusing.
You'll need to sign in or create an account to connect with an expert.
You can claim the interest.
When you get to that section
Deductions & Credits
Your Home
Mortgage Interest, Points, Refinancing, and Insurance START or UPDATE
Select Primary Home
Select "Our names are not on the 1098, or neither of our names are listed first on the 1098." on the "Doi any of these situations apply?" screen
Enter the information reported on the 1098 including your mother's name and address
You are allowed to claim the interest because you paid it, and you have ownership interest.
Your basis in the house is the fair Market Value on the date of passing,
I am sorry for your loss.
This is so incredibly helpful, can't thank you enough!
The refi in my name funded last November, however I didn't make my first payment until January 1st this year. Does that matter? I'm trying not get confused with the reverse mortgage, and the new refi mortgage.
The 1098 sent to my Mom's estate was for 2023 and shows the full amount of interest for the life of the reverse, and plus the insurance premiums and such.
For the basis, can I use the amount that probate determined the house was worth? Since I inherited the property and didn't purchase it, I should get stepped up right?
The year on the form matters. If it says 2023 and you paid it then you should deduct it on this year's taxes.
Yes, the probate value is perfect. You do indeed get the step up in basis. Save that documentation for when you decide to sell the house.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
lhilldorfer
Returning Member
asalot
Level 1
rjo1993
New Member
nhkyn
Level 1
owlcreekla
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.