Currently have an FHA Mortgage. We have already spoken to the lender to start the process for her to do the FHA loan assumption and have the paperwork. Just trying to figure out if she takes out the separate Home Loan is this considered tax-deductible or will either one of us be taxed.
No one gets taxed on this division of the assets ... it is not a taxable event.
Thanks for the quick answer. Even if she is not doing a refinance of the original mortgage? She is just doing the loan assumption, but taking the separate loan to "cash me out" after we get an appraisal.
Again ... this is just marital assets being split no matter how it needs to happen. This is no different then splitting the money in the piggy bank ... there is no taxable issues in this transaction.