Well it depends on what kind of mortgage.
lots of info on my site on this one, but in short the money you get from the reverse mortgage is not subject to income tax because it is borrowed money, not earned money. this is similar to a home equity line of credit taken out against a home, no income tax is paid on the loan. On the flip side, the interest you pay on a mortgage is tax deductible in the year you pay the interest, not necessarily in the year it accrues. Because a reverse mortgage does not require mortgage payments, you typically will not have a mortgage interest deduction on your income taxes. However, if you need a deduction on a particular year you can pay interest payments whenever you want, thus receiving a 1098 interest statement making that money tax deductible.
The equity in your home is not a tax deduction. The interest paid to banks for a home equity line of credit or loan may be tax deductible.
Certain mortgage interest paid on a primary residence, meeting some other qualifications, is deductible against ordinary income - as an itemized deduction, if that is what you mean.
Ownership of the home. Until the mortgage is paid, the lender retains a financial interest in the home.
Report the mortgage interest on Schedule A, just like you would any other mortgage. If they do not issue you a mortgage interest statement and report it to the IRS, you will need to provide additional information.
Very few. If any of your mortgage costs are deductible as pre paid interest, (which hey generally aren't), they will be reflected as such on the interest statement the mortgage company provides. Closing fees etc are NOT expensable.
No, personal interest is never deductible, regardless of who it is paid to.
lots of info on my site on this one, but in short the money you get from the reverse mortgage is not subject to income tax because it is borrowed money, not earned money. this is similar to a home equity line of credit taken out against a home, no income tax is paid on the loan. On the flip side, the interest you pay on a mortgage is tax deductible in the year you pay the interest, not necessarily in the year it accrues. Because a reverse mortgage does not require mortgage payments, you typically will not have a mortgage interest deduction on your income taxes. However, if you need a deduction on a particular year you can pay interest payments whenever you want, thus receiving a 1098 interest statement making that money tax deductible.
The equity in your home is not a tax deduction. The interest paid to banks for a home equity line of credit or loan may be tax deductible.
Certain mortgage interest paid on a primary residence, meeting some other qualifications, is deductible against ordinary income - as an itemized deduction, if that is what you mean.
Ownership of the home. Until the mortgage is paid, the lender retains a financial interest in the home.
Mortgage Tax Savings Calculator Interest paid on a mortgage is tax deductible if you itemize on your tax return. So are points that are paid to lower your interest rate. Use this calculator to determine how much you could save in income taxes. Click on the "View Report" button to view the results in detail.
no
If HELOC was used to improve your home, the interest paid on the loan is tax deductible up to 1 million dollars. If HELOC was used for other purposes, you can deduct the interest up to $100,000.
Report the mortgage interest on Schedule A, just like you would any other mortgage. If they do not issue you a mortgage interest statement and report it to the IRS, you will need to provide additional information.
The beauty of a Home Equity Loan or Line of Credit is that interest paid is usually tax deductible* AND you can use the money for any purpose YOU choose - home improvements, consolidate debts, college education, vehicle purchase, or vacations.
Personal interest is not tax deductible