- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
A client had a reverse mortgage on his primary residence for several years (Mortgage origination date is 2010). He sold the home in 2020. He received a 1098 showing mortgage interest of $25,000 and Mortgage insurance premiums of $10,000. Here are the quesions I have:
Is any portion of the $25k Mortgage interest deductible? I dont believe so because the IRS views a reverse mortgage as Home Equity debt which is not deductible unless he used the money to buy or improve the home in some way
Is any portion of the mortgae insurance deductible? Again I believe it is not if loan was not used to buy or improve the home
It may seem like I'm asking and answering my own questions. Just looking for a bit of a confirmation on those points and I thank you in advance.