Are fees or mortgage interest on a reverse mortgage deductible?
You can't deduct service fees for your reverse mortgage. You can deduct mortgage interest when you actually pay it. However, in a reverse mortgage, you usually don't pay interest until the end of the term. You can't deduct interest on a reverse mortgage added monthly to the outstanding loan balance as it accrues.
You can't deduct private mortgage insurance as interest on a reverse mortgage, since it's not acquisition debt.
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This advice is for general information purposes only and may not apply to you. Every tax situation is different. This is not intended to be legal advice. Taxpayers should consult an H&R Block Tax Professional regarding their individual tax situation.