What about taxes on the cash received from a reverse mortgage?

October 27, 2015 2:25 pm Published by Comments Off on What about taxes on the cash received from a reverse mortgage?

Typically, the cash received from a reverse mortgage is not subject to individual income taxation. Borrowers are are still responsible for property taxes, insurance, utilities, fuel, maintenance, and other home-related expenses. Interest on reverse mortgages is typically not deductible on income tax returns until the loan is paid off in part or in whole. Reverse Mortgage Professionals always recommend that borrowers consult with their tax advisor to provide guidance for their individual situation.