Aleta, payments from a reverse mortgage is the same as receiving any other income. It's the proceeds from the sale of the house, paid in monthly increments, so it is taxable. The loans have been around for several years now. Asking about income from such a mortgage is one of the questions that a tax preparer asks to make sure that all income is listed. Since the reverse mortgage is more beneficial, profit-wise, for a bank, and that's their only reason for making such an instrument available, and since the bank is the one who creates the documents, I wouldn't trust any questions about my tax situation to be answered by them, not even about this one thing. You'd need to ask your CPA. If you have a CPA prepare your taxes, they normally will handle questions over the phone during the rest of the year without additional cost. If someone wants to make sure that their family doesn't get any proceeds after their death but would like to someone else get some good out of the money, there are trusts that can be set up through such groups as the Salvation Army. The real estate is sold, and the proceeds go directly into the trust, not to the seller, which has tax benefits. They pay a portion of the money out each year, and whatever remains when the person dies goes to the charity who handles the trust. This is a list of the options available at the Salvation Army: http://www.christianity.com/CC_Content_Page/0,,PTID3748%7CCHID154265%7CCIID,00.html Jan G. ----Original Message Follows---- From: AletaM@aol.com Reply-To: BLACKSHEEP-CHAT-L@rootsweb.com To: BLACKSHEEP-CHAT-L@rootsweb.com Subject: Re: [BSChat] Re: [BS-L] Administration of wills Date: Wed, 24 Apr 2002 17:45:26 EDT In a message dated 4/24/02 2:46:01 PM Mountain Daylight Time, zippywebgenie@hotmail.com writes: > In that arrangement, you do get taxed on the income from the house. I have just heard about this on different news programs. I think that who ever the arrangements are made with would know. I remember it called a Reverse Mortgage. Probably as many ways to set this up as a mortgage. Aleta, IBSSG, Charter Member Bo-Peep Award Ogden, Utah, USA "God sent his Singers upon the Earth, With songs of Gladness and Mirth. That they might touch the hearts of men, And bring them to Heaven again." --Longfellow ==== BLACKSHEEP-CHAT Mailing List ==== Creative use of your delete key is encouraged. If you disagree with the subject, CHANGE the subject. ============================== To join Ancestry.com and access our 1.2 billion online genealogy records, go to: http://www.ancestry.com/rd/redir.asp?targetid=571&sourceid=1237 _________________________________________________________________ Send and receive Hotmail on your mobile device: http://mobile.msn.com