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Deductions & credits
You will report the transaction in the tax year in which it occurred.
Interest related to cash out refinancing is not deductible, even if you later used it to pay down the mortgage.
However, interest is deductible if the loan was used to "buy, build or substantially improve" the home that secures the loan.
ā€ˇFebruary 2, 2021
12:10 PM