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| *Loan,banking and credit>>>income tax |
Are settlement costs from a reverse mortgage deductible on my income taxes? |
Are settlement costs from a reverse mortgage deductible on my income taxes? Mortgage interest is deductible in the year paid. That being said, it's important to note that the IRS considers points to be amortized over the life of the mortgage (this is in fact a grey area, some tax courts have held that the points are deductible up front.) How much money are we talking? Is it worth fighting with the IRS? If so, go to a CPA for preparation. If not, decide whether you want to risk it or not. Soe settlement cost from ALL mortgages are deductible over the term of the note. NO: This mortgage is basically a loan of the equity in you property. The more payments you get the less you own. If the settlement cost was not taken out of the proceeds then the level of asset ownership is higher, so those expenses are deducted from the total of the funds paid. They would appear as income to the company it was paid to. |
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