Understanding HECM Tax Deductions

In his latest Nerds Eye View column, titled The Taxation Of Reverse Mortgage Loan Proceeds And Interest Payments, blogger, tax specialist and financial planner Michael Kitces explains the various tax deductions that may apply to reverse mortgages.

While most reverse mortgage professionals are aware that interest paid over the life of the loan can be deducted when a reverse mortgage pays off, Kitces offers scenarios whereby mortgage insurance premiums and real estate taxes may also be deductible.