Written by Dennis Gassway, as originally published in The Reverse Review.

In the year that a reverse mortgage is paid off, can the original closing cost and all of the accumulated interest be claimed as a deduction on your income tax? 

Yes, the borrower should receive a 1098 reflecting all the interest the borrower paid into the loan as long as the interest is over $600. The closing costs cannot be claimed but the interest on those closing costs will be included in the 1098.