Sheila Edelstein, CPA

1200 Harger Rd - Ste 209
Oak Brook, Illinois 60523
Voice 630.574.0840
Fax 630.572.1432
info@sheilaedelstein.com

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A reverse mortgage, per IRS Publication 17, is a loan where a lender pays you, in a lump sum , monthly advance, a line of credit, or a combination of all, while you continue to live in your home and retain title to your home. It is considered a loan advance, not income, and the amount you receive is not taxable. Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full (subject to limits discussed in IRS Publication 936).

Based on your plan, your reverse mortgage becomes due when you move, sell your home, reach the end of a pre-selected loan period, or die.

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