No, reverse mortgage interest is not tax deductible.
Reverse mortgages are a type of loan that allows homeowners 62 and older to access the equity in their homes without having to make monthly payments. The loan is repaid when the borrower dies, sells the home, or moves out permanently.
Interest on a reverse mortgage is not tax deductible because it is considered to be a consumer loan. Consumer loans are not eligible for the mortgage interest deduction, which is a tax deduction that allows homeowners to deduct the interest they pay on their mortgage on their federal income tax return.
There are a few exceptions to the rule that reverse mortgage interest is not tax deductible. For example, if you use the proceeds from a reverse mortgage to buy, build, or substantially improve your home, then the interest may be tax deductible. Additionally, if you use the proceeds from a reverse mortgage to pay for qualified medical expenses, then the interest may be tax deductible.
If you are considering a reverse mortgage, it is important to understand the tax implications. You should talk to a tax advisor to get personalized advice.