We (Me and my Husband) "purchased" our house from his Grandparents. They still have a half life estate on the house. We paid off the reverse mortgage they had on the house as well as other loans. His Grandparents are our dependents (we pay for their food, utilities, medical, etc.). When we paid off the reverse mortgage there was mortgage interest paid. Can we claim the mortgage interest paid on our taxes?
To be deductible, mortgage interest must be on a loan in your name. The interest you did pay simply adds to the cost of your property.
ChEAr$, Harlan Lunsford, EA n LA
It looks to me like your husband's grandparents should get a 1098 from the mortgage company for the interest that was paid on their reverse mortgage. At least the interest on up to $100,000 of that mortgage should be deductible. But it's deductible by your hubby's grandparents. Do they have any taxable income to deduct it from???
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