All of your proceeds from a reverse mortgage are tax free, so no, you have no tax liability when it comes to the funds you are receiving from your reverse mortgage; however, you are still required to stay current with the property taxes for the property.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.