https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat-down/01/1737915#M164758 The post got cut off. “ would the refinance costs be tax deductible against the rental income from the investment property? Tue, 27 Oct 2020 21:44:47 GMT brogge11 2020-10-27T21:44:47Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat-down/01/1737915#M164758 The post got cut off. “ would the refinance costs be tax deductible against the rental income from the investment property? Tue, 27 Oct 2020 21:44:47 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat-down/01/1737915#M164758 brogge11 2020-10-27T21:44:47Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat/01/1737917#M164760 <P>Yes, but...</P> <P>&nbsp;</P> <P>The refinance of your personal property to raise money for investment property will only be deductible as an expense on the business property so long as you maintain an absolutely clear paper trail/money trail between the refinance and the investment property. &nbsp;You will need to show, if audited, that your costs were purely related to your business income. &nbsp;As soon as you start mixing up the money (such as, using part of the refinance to pay personal bills, buy a car, take a vacation, etc.) then it becomes more difficult to determine what part of the cost is a legitimate business expense and the deduction will be at risk if you are audited&nbsp;</P> Tue, 27 Oct 2020 21:49:45 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat/01/1737917#M164760 Opus 17 2020-10-27T21:49:45Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat/01/1737919#M164761 <P>Thanks. The company doing the refinance is the same that holds the mortgage for the investment property. They will take the cash out money and apply it directly to the investment property mortgage so the paper trail should be clear.</P> Tue, 27 Oct 2020 21:55:06 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat/01/1737919#M164761 brogge11 2020-10-27T21:55:06Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat/01/1737955#M164763 <P>In the TT program YOU will need to prorate the mortgage interest yourself between the Sch A and Sch E ... do not let the program do it for you.</P> Wed, 28 Oct 2020 00:04:39 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-am-doing-a-cash-out-refinance-on-my-primary-residence-the-cash-out-funds-will-be-used-to-pat/01/1737955#M164763 Critter-3 2020-10-28T00:04:39Z