I did a cash out refinance of my house in 2015 due to a divorce. I took cash out to pay my ex-wife. Is the interest I am paying on that money not tax deductible?
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1 Best answer
DDollar
Expert Alumni
Jun 6, 2019 12:03:33 AM
What you did was effectively purchase your ex-wife's interest in the house you co-owned. Since the cash out proceeds of the refinance were used to purchase your primary residence the full amount of interest should be tax deductible.
1 Replies
DDollar
Expert Alumni
Jun 6, 2019 12:03:33 AM
What you did was effectively purchase your ex-wife's interest in the house you co-owned. Since the cash out proceeds of the refinance were used to purchase your primary residence the full amount of interest should be tax deductible.