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Level 2
June 7, 2019
Solved

Ex-wife going to assume mortgage as FHA loan assumption. She is planning to get another home loan to pay my equity. Is this taxed as it is paying me my equity?

  • June 7, 2019
  • 2 replies
  • 37 views

Currently have an FHA Mortgage.  We have already spoken to the lender to start the process for her to do the FHA loan assumption and have the paperwork.  Just trying to figure out if she takes out the separate Home Loan is this considered tax-deductible or will either one of us be taxed.  

    Best answer by Critter

    No one gets taxed on this division of the assets ... it is not a taxable event. 

    2 replies

    Critter
    CritterAnswer
    Level 15
    June 7, 2019

    No one gets taxed on this division of the assets ... it is not a taxable event. 

    divinsAuthor
    Level 2
    June 7, 2019
    Thanks for the quick answer.  Even if she is not doing a refinance of the original mortgage?  She is just doing the loan assumption, but taking the separate loan to "cash me out" after we get an appraisal.  
    June 7, 2019

    the new loan is neither tax deductible or taxed.  

    divinsAuthor
    Level 2
    June 7, 2019
    I didn't mean tax deductible.  I just edited it.  Thanks.