We refinanced our home with a cash out that we use...
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becca5210
New Member

We refinanced our home with a cash out that we used to purchase a second home (non rental). Does this qualify for any tax deductions?

 
3 Replies
ColeenD3
Employee Tax Expert

We refinanced our home with a cash out that we used to purchase a second home (non rental). Does this qualify for any tax deductions?

Yes.

 

Please see this LINK for a more thorough discussion of the topic.

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becca5210
New Member

We refinanced our home with a cash out that we used to purchase a second home (non rental). Does this qualify for any tax deductions?

Thank you for the reply.  Are you sure that this applies to second residences, not rental homes?  I can only find information on rental homes, such as the link you referenced. This second property is not a rental.

ReneeM7122
Level 6

We refinanced our home with a cash out that we used to purchase a second home (non rental). Does this qualify for any tax deductions?

You can generally only deduct the interest if it was used to buy, build, or substantially improve your home.   It can apply to a rental home, but it does not apply to the purchase of a second home that you bought with the money from the cash-out refinance.  

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