To be perfectly clear, the majority of costs associated with obtaining a reverse mortgage, such as origination fees and closing costs, are not tax deductible. The only deductible part is the interest, but only if and when you pay it, which ordinarily happens when you repay the loan after you either move out or die. The Internal Revenue Service considers it differently than usual mortgage interest, so it’s a good idea to accurately track the interest you can possibly deduct. Based on my research this guide on reverse mortgage interest deductions quite helpful to assist me in determining which interest can be possibly deducted and which interest cannot be deducted.