5. March 2010 by admin.

Question:   Are the amounts a taxpayer receives from a “reverse mortgage” taxable?  Deductible?

Answer:   NO to both.  Interest on a reverse mortgage loan added monthly to the outstanding loan balance as it accrues is neither taxable in a cash method lender’s gross income nor deductible by a cash method borrower at the time it is added.

• The primary purpose of a reverse mortgage loan is to enable elderly persons with limited incomes to remain in their homes.
• Repayment of the loan is due when the principal amount has been fully paid to the borrower (they receive monthly allotments),
• The residence that secures the loan is sold,
• The borrower dies, or the borrower ceases to use the home as the borrower’s principal residence

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3. March 2010 by admin.

Are Work Clothes a Deduction? 

Generally yes if they are work clothes or uniforms if required and NOT suitable for everyday use.  That deduction would include the cost and upkeep if both requirements are met.

If I purchase a nice suit for business, it is not a deduction as it has alternate use.

If I am a professional clown (no comments please), then the clown suit with the big shoes, etc. would be a deduction.  Yes, It has alternate use but I probably would not use it to go to the mall.

Nor is it enough that you do not, in fact wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.  www.USATaxHelp.com

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