Interest charged on a reverse mortgage, is it deductible on income tax on a yearly basis? Or do you have to wait until reverse
Fremont, CA |
mortgage ends as in the death of the person who took out the loan. My mother has filed income tax every year since she got the loan and was told the mortgage interest was not deductible. Is it deductible and when? If it was deductible each year, then what? Do we have to refile for each of those years? She took the reverse mortgage out in 2009. Can we refile, even though she has passed away?
The interest may not be deductible because under the reverse mortgage she is not writing a check for anything. As a cash basis taxpayer you only get a deduction if you write a check. There are, of course, exceptions such as depreciation.