Mortgage Insurance on Reverse Mortgage

That's what it sounds like to me, too. On the reverse mortgage if the home owner/seller dies before the home equity is depleted, her estate will get a refund of the difference. But if she lives too long, the lender will need perhaps a type of life insurance to keep the transaction going until the person dies.

Stu

Reply to
Stuart A. Bronstein
Loading thread data ...

Here is what I found on Wikipedia regarding Reverse Mortgages:

Related taxes The American Bar Association guide[2] advises that generally,

the Internal Revenue Service does not consider loan advances to be income, annuity advances may be partially taxable, and interest charged is not deductible until it is actually paid, that is, at the end of the loan. The mortgage insurance premium is deductible on the 1040 long form.

So my client is going to get the full deduction for the full $5000+ mortgage insurance premium payment paid in 2008 on the 2008 tax return

Thanks to all the responded.

Cheers,

WDK

========================================= MODERATOR'S COMMENT: In the future, please delete the standard trailer from message to which you are responding. RDA

Reply to
KEBSCHULLW

Dick wrote, above:: "Ask the Reverse Mortgage company for a copy of this policy. This smacks of a hidden add-on to increase the actual interest to be paid. Regardless it should have appeared on the truth-in-lending statement. "

To which I say with incredulity, "HIDDEN add-on"...??? Whom do you think you're kidding...!!??

Reply to
lotax

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.