Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Is the amount an individual paid to the loan company to secure…

Is the amount an individual...
Is the amount an individual paid to the loan company to secure a reverse mortgage tax deductible?
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
4/1/2013
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,667
Experience: Taxes, Immigration, Labor Relations
Verified

LEV :

Hi and welcome to Just Answer!
The cost to obtain a mortgage is deducted as a mortgage interest over the life of that mortgage.
That cost generally may not be deducted in the year paid.
Thus - if that is a 30-year mortgage - the cost is deducted ratably over 30 years.

LEV :

The IRS has developed a new form for employees who have been misclassified as independent contractors by an employer. Form 8919, Uncollected Social Security and Medicare Tax on Wages, will now be used to figure and report the employee’s share of uncollected social security and Medicare taxes due on their compensation.
By filing this form - you will pay ONLY your portion of FICA taxes as an employee. And your employer will be responsible to pay their portion.

LEV :

Sorry - the last post was a mistake. Please disregard.
Let me know if you need any help or clarification.

Customer:

Just to be clear, even on a reverse mortgage where the taxpayer had to pay 40k upfront deposit for the loan, he can only amortize the coast over the life of the loan?

LEV :

That is correct - the deposit which is not repaid back - is treated as a prepaid mortgage interest and may be deducted over the life of the mortgage.
The part of the deposit which is expected to paid back is not deductible.

Customer:

great appreciate the help

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,667
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,667
32,667 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
The allocation of mortgage interest & real estate taxes on a
the allocation of mortgage interest & real estate taxes on a married filing separately.return one spouse owns the house and his name is ***** ***** name on the mortgage.Is the other spouse entitled to… read more
Lev
Lev
Tax Advisor
32,667 satisfied customers
Are property taxes on a first and second home tax deductible
Are property taxes on a first and second home tax deductible in the same year on schedule A?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am an independent contractor or self-employed with
I am an independent contractor or self-employed with Colonial Life. I am 1099. So that I am not penalized in 2019 I need to send in an estimated tax payment each quarter. I am 66 yrs old and my wife i… read more
Lev
Lev
Tax Advisor
32,667 satisfied customers
IRS tax question: If an independent contractor who is a
IRS tax question:If an independent contractor who is a realtor provides meals on premises for other realtors who are also independent contractors can they take the meals and entertainment deduction at… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
Independent contractor, drive cars for dealer for trades
independent contractor, drive cars for dealer for trades between dealerships, 26 miles home to dealership to pick up car and upon return 13 miles back to home. Usual number of trips per month is 15. F… read more
abci168
abci168
Principal
27 satisfied customers
Are any closing costs tax deductible? Bought a new
Bought a new construction home in April of 2017, Mortgage Interest Statement has mortgage interest and mortgage insurance premiums on the statement to deduct. 0 points. Closing statement has insurance proration, prepaid interest, Homeowner's insurance and property taxes for 2 months. Are these deductible? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
Can I take mortgage interest and the standard deductions?
Can I take mortgage interest and the standard deductions? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
I was an independent contractor for the first half of 2017
I was an independent contractor for the first half of 2017 and incurred educational expenses to advance my career. I did not make any income Jan-Jun. In July, I got a W2 job. Can I deduct the business… read more
abci168
abci168
Principal
27 satisfied customers
If I worked as an independent contractor for a company
Hi if I worked as an independent contractor for a company located overseas and did not receive a 1099 form am I still required to file it on my tax return?… read more
Lev
Lev
Tax Advisor
32,667 satisfied customers
I am an independent contractor working for a company, there
I am an independent contractor working for a company, there are days that I work from home and days that I am at the office. What is the IRS rule on deducting the home office?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
Can I deduct mortgage interest, real estate taxes, utilities
Can I deduct mortgage interest, real estate taxes, utilities and condo fees for a commercial rental property that I have not made available for rent? I am assuming that Building appraisal fees, and le… read more
emc011075
emc011075
Tax advisor and Enrolled Agent
Bachelor\u0027s Degree
2,913 satisfied customers
Well, last year I work as an independent contractor for a
Hello! Well, last year I work as an independent contractor for a company while on opt (F1 Visa) should I send my company a W9 or W-8BEN? should I file a 1099 or 1040NR … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
Can an independent contractor declare a loss if a client
Can an independent contractor declare a loss if a client dosent pay for work performed? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Pearl. My tax question is about mortgage interest deduction.
Hi, Pearl. My tax question is about mortgage interest deduction. I had equal co-ownership of a property with my ex-fiance from January through October 2017, when I transferred sole ownership of the pr… read more
abci168
abci168
Principal
27 satisfied customers
As an independent contractor, if I invoice a company this
As an independent contractor, if I invoice a company this month, for services performed in 2017, does that become any kind of accounting issue for either them or me? I have already received my 1099Mis… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
Lev
Lev
Tax Advisor
32,667 satisfied customers
In an independent contractor in Hawaii. There is a 4% excise
In an independent contractor in Hawaii. There is a 4% excise tax for independent contractors. I'm a tennis pro working for a resort. The resort pays me 70% of my lesson. For instance, a lesson is $100… read more
Lev
Lev
Tax Advisor
32,667 satisfied customers
Form 886-A Deductible Home Mortgage Interest Taxpayer has
Form 886-A Deductible Home Mortgage Interest Taxpayer has $1,000,000 in Grandfathered debt. Line 9 Form 886-A - is this line amount after deducting the garandfathered debt… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x