Reverse mortgage interest paid

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Y2KEA
    Senior Member
    • Nov 2005
    • 344

    #1

    Reverse mortgage interest paid

    This is the first time I have run across this situation.

    TP inherits house, does not occupy it & sells house.
    Reverse mortgage is paid off including $74,000 of interest.
    What is the character of this interest & where would you report it?
    Sdhedule A line 10 or 14?
    Or include on schedule D as selling expense?
  • Lion
    Senior Member
    • Jun 2005
    • 4699

    #2
    Investment interest?

    Comment

    • JohnH
      Senior Member
      • Apr 2007
      • 5339

      #3
      Strictly off the top of my head, I'd add it to the basis of the house in calculating the gain or loss on an inherited asset. But don't fill out any forms based on my input alone - I'm interested in seeing what others say about it.
      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

      Comment

      Working...