Do You Have Income With A Reverse Mortgage Loan?
I’m having trouble finding the law that states the answers for these. I’m only looking for the law that will answer my questions.
When I take my monthly draw from the bank from my reverse mortgage loan is that considered income? Also can I deduct the interest when it is added to the outstanding loan balance each month.
Category: mortgage
Yes you get a monthly income based on your situation but its a big rip off. Don’t do it.
A reverse mortgage is just a specialized loan. Loan proceeds are never taxable, including from a reverse mortgage.
I really dont know, but it sounds to me like it shouldnt if you lived in the house for 2 of the last 5 years on like the first $500,000 of profit.
and if it is taxable, im sure only a fraction would be taxed from each months draw. the portion that is considered profit would be taxed, not your basis.
this is what sound the most reasonable to me
call the irs.gov people