mortgages have been around for 15 years, recent federal initiatives are expanding their availability and marketability.
The funds from a reverse
mortgage can be used for anything the borrower chooses, from supplementing retirement income to repairing or modifying a home to make it handicap friendly, taking a vacation or paying off existing debt.
2000-37 is intended to free Treasury resources from analyzing facts and circumstances of reverse
exchanges and to assist taxpayers disadvantaged by TAM 200039005.
exchanges provide an opportunity for investors to "warehouse" acquired properties, reserving the right to match them with other properties they may sell within the time limits for a tax-deferred exchange.
The following example illustrates the difficulties in applying reverse
acquisition principles to a transaction that meets the Sec.
The authors concur with this view and also believe that the reasoning of cases involving simultaneous and Starker-type deferred exchanges provide a model for determining when an exchange, including a reverse
exchange, is a valid like-kind exchange.
The interest will be deductible (to the extent not deductible during the reverse
mortgage term because it was not "paid") for income tax purposes as expenses in respect of a decedent under Sec.