Skip to main content
TurboTax
Community
TurboTax
TurboTax
Luna4
Level 1
Jan 7, 2022 2:25 AM UTC
Question

Pulling out Equity from a refinance

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

    2 replies

    DaveF1006
    DaveF1006
    Alumni - Intuit
    Jan 7, 2022 2:42 AM UTC

    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. 

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
      Mike9241
      Level 15
      Mike9241Level 15
      Level 15
      Jan 7, 2022 4:07 AM UTC

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

      Mike9241
      TurboTax flag icon

      Unlock tailored help options in your account

      Create an account
      TurboTax Expert Assist
      TurboTax Expert

      Get answers to all your tax questions

      Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

      Explore your options
      Terms & ConditionsAccessibility statement
      Sitemap
      Intuit
      TurboTax Credit Karma QuickBooks MailChimp

      ©1997-2026 Intuit, Inc. All rights reserved.
      Intuit, QuickBooks, QB, TurboTax, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

      Security Certification of the TurboTax Online application has been performed by C-Level Security.

      By accessing and using this page you agree to the Terms of Use.

      About Cookies Manage cookies

      TRUSTe nResult Certified e-File C-Level Security Certification
      Intuit
      TurboTax Credit Karma QuickBooks MailChimp

      © 2026 Intuit Canada ULC or its affiliated companies. All rights reserved. Intuit, QuickBooks, QB, TurboTax and ProFile are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

      Copyright © Intuit Canada ULC, 2026. All rights reserved.

      About Cookies Manage cookies

      Intuit
      TurboTax Credit Karma QuickBooks MailChimp

      © 2026, Entreprises Intuit Canada ULC ou ses sociétés affiliées. Tous droits réservés. Intuit, QuickBooks, QB, TurboImpôt et ProFile sont des marques déposées d’Intuit Inc. Les modalités, prix, fonctions et options de service et de soutien peuvent changer sans préavis.

      © 2026, Entreprises Intuit Canada ULC. Tous droits réservés.

      À propos des témoins Gérer les témoins