Posted on: 08th Mar, 2009 07:17 am
what will be the accounting treatment in the hands of legal hier in case of reverse mortgage...whether the legal hier should make the provision in his part for that and whether that provision is permissible by the income tax authority as per india law and if yes how it can make it
Hi prince
When an heir inherits a property which has a reverse mortgage on it, the heir will have to pay off the reverse mortgage. He/she can take a conventional or FHA mortgage and pay off the reverse mortgage dues.
"legal hier should make the provision in his part for that and whether that provision is permissible by the income tax authority"
Well, I did not understand what you wanted to say by this. Can you please explain this?
Thanks.
When an heir inherits a property which has a reverse mortgage on it, the heir will have to pay off the reverse mortgage. He/she can take a conventional or FHA mortgage and pay off the reverse mortgage dues.
"legal hier should make the provision in his part for that and whether that provision is permissible by the income tax authority"
Well, I did not understand what you wanted to say by this. Can you please explain this?
Thanks.
whether the legal heir make a provision for that amount which he will pay to release the property from mortgage
Hi prince
The legal heir will have to pay off the reverse mortgage in order to save the property. So, he/she will have to make a provision to pay off the mortgage in order to release the property.
Thanks.
The legal heir will have to pay off the reverse mortgage in order to save the property. So, he/she will have to make a provision to pay off the mortgage in order to release the property.
Thanks.