topic Pulling out Equity from a refinance in Deductions & credits

Pulling out Equity from a refinance

Luna4 — Fri, 07 Jan 2022 02:25:38 GMT

If I pull out equity from a refinance what are the taxes consequences?

Re: Pulling out Equity from a refinance

DaveF1006 — Fri, 07 Jan 2022 02:42:41 GMT

It depends. There is no income tax consequence for pulling out the equity for a refinance because it is considered a loan. However, you will not be eligible for a mortgage interest deduction on the amount you used for personal reasons because the loan was not used to make capital improvements to substantially improve your home.

Re: Pulling out Equity from a refinance

Mike9241 — Fri, 07 Jan 2022 04:07:07 GMT

what did you do with the cash you pulled out? there are tax laws regarding tracing the use of proceeds from a loan.