Explore the 1,000’s of tax questions answered by professionals.

Back to list

QUESTION DETAIL

Related User

Votes

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?


ANSWER


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

  • Currently /5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
110 Ans.