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Reverse mortgage: What are the tax liabilities | Housing News – Reverse mortgage: What are the tax liabilities. Here’s an analysis of the options Under the Reverse Mortgage Scheme (RMS), a senior citizen can opt to receive an additional source of income on the security of an owned residential house, without having to service it during his lifetime. Under RMS, a senior citizen has two options.

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The IRS Treatment of Reverse Mortgage Interest Paid – Zacks – As with a traditional mortgage, interest on a reverse mortgage is deductible; however, this deduction is limited to interest paid on no more than $100,000 of loan principal. This is the IRS limit.

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