Skip to main content
Level 5
Mar 19, 2021 2:20 PM UTC
Question

Cash Out Refi

We completed a cash out refi on a rental home in Texas and took money out to put down towards a new home in California.   But this means this is an additional loan that we have to pay back to the bank anyway.  Would the money we took out be considered income?  Is there a time limit of how long we have before it can be considered income?

    2 replies

    Alumni - Intuit
    Mar 21, 2021 9:47 PM UTC

    No, cash-out proceeds from a refinance are not considered "income" - it is just money you borrowed and have to pay back. 

     

    (Since the cash you borrowed is not taxable income, you cannot claim a deduction when you pay it back)

    Level 5
    Mar 23, 2021 5:16 PM UTC

    Thank you!