Tax Prep by Deb Posted June 16, 2023 Report Share Posted June 16, 2023 Just need someone to check me on this. My client recently paid off her home that had a Reverse Mortgage on it. It has accumulated over the past 12 years approximately 144000.00 in interest. Am I right in assuming that none of this interest is deductible because it is considered home equity? It looks like it cannot be grandfathered in because it was not used to buy or improve her home. Hopefully someone with more experience on Reverse Mortgages can chime in. Thank You in advance! Quote Link to comment Share on other sites More sharing options...
Lee B Posted June 16, 2023 Report Share Posted June 16, 2023 i agree, it would not be deductible unless the funds advanced were used to improve the home, or were used for business or investment purposes . Interest tracing rules still apply. Quote Link to comment Share on other sites More sharing options...
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