Do I have to pay Capitol Gains tax on a Cash Out Refinance of a rental property? I used some of the cash out portion to payoff Home Equity Loan on a second residence and some for improvements on rental. Where on Turbo Tax schedule E do you report Cash out refinance
You'll need to sign in or create an account to connect with an expert.
You pay cap gains in the profit on the sale...a motgage payoff is not taken into consideration at all. Think of it this way...you got some of the profit in advance when you refinanced to take equity out of the home and you were not taxes then so you are taxes now.
You pay cap gains in the profit on the sale...a motgage payoff is not taken into consideration at all. Think of it this way...you got some of the profit in advance when you refinanced to take equity out of the home and you were not taxes then so you are taxes now.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
mag1949
Level 1
GDB-KU
New Member
knownoise
Returning Member
taxdoofus
Returning Member
nomad
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.