topic 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? in Investors & landlords

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?

becca5210 — Wed, 03 Mar 2021 23:30:26 GMT

Re: We refinanced our home with a cash out that we used to purchase a second home (non rental). D...

ColeenD3 — Wed, 03 Mar 2021 23:45:22 GMT

Yes.

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

Re: We refinanced our home with a cash out that we used to purchase a second home (non rental). D...

becca5210 — Thu, 04 Mar 2021 00:39:16 GMT

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.

Re: We refinanced our home with a cash out that we used to purchase a second home (non rental). D...

ReneeM7122 — Thu, 04 Mar 2021 23:43:55 GMT

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.