Hello,
I would like to understand the tax implications. I have home in Texas that I have been renting out to tenants for many years. My wife and I live in an apartment in CA. This year we decided to do a cash out refi since interest rates are so low so we can put at least a 20% down on a primary home in CA.
We don't have a home in mind, but the lender who will work on our CA loan mentioned to us that it would be better to get the cash-out refi done first to be ready once we find a home in CA, but just keep the bank in an account and don't touch it.
1) Since we don't have a home yet, what are the tax implications ? The cash that we will receive is it considered taxable income? Do we have to pay taxes?
2) Now that the home in texas has been refinanced at a lower interest rate, how do I update turbo tax so it know that it understands the changs that happened so I can deduct the right deduction?
