ABA Family Legal Guide

The Rights of Older Americans

Housing and Long-Term Care Options

Home Equity Conversion

What about tax consequences?

There are two issues here. The first is whether the income from a reverse mortgage is taxed. So far, it has not been, under the assumption that it is a loan advance. Second is whether the interest can be deducted. Generally, interest cannot be deducted until it is paid. Since the interest on a reverse mortgage is not paid until the loan comes due, it cannot be deducted until that time.