Deductibility of Mortgage Interest on Reverse Mortgages

[Tax Prep by Deb]

Just need someone to check me on this.  My client recently paid off her home that had a Reverse Mortgage on it.  It has accumulated over the past 12 years approximately 144000.00 in interest.  Am I right in assuming that none of this interest is deductible because it is considered home equity?  It looks like it cannot be grandfathered in because it was not used to buy or improve her home.

Hopefully someone with more experience on Reverse Mortgages can chime in.

Thank You in advance!

[Lee B]

i agree, it would not be deductible unless the funds advanced were used to improve the home, or  were used for business or investment purposes .

Interest tracing rules still apply.