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Are there any tax consequences when a person is relieved of a reverse mortgage? Is a reverse mortgage considered a loan advance or a cancelled debt?


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Expert Mark Anderson's Answer:

Yes.   A reverse mortgage is considered debt.  Therefore, it is income for cancellation of debt.  There may be execptions if the loan was on your principal residence.  I hope this answers your question.  Thank you.

Mark Anderson, JD

Montana

21 yrs experience

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