Question about refinanced mortgage
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rittiar
New Member

Question about refinanced mortgage

Turbotax 2018 wants to know if i have ever pulled cash out from my loan when I refinanced?  I don't know what this means.  Does this mean from the original loan?  Since the original mortgage, I have pulled cash out.  But that was the original loan, not this refinanced loan. Does then mean I should answer "yes"

4 Replies
KrisD
Intuit Alumni

Question about refinanced mortgage

It is asking if, when you refinanced, you merely refinanced the original loan amount (perhaps to get a better interest rate) or you refinanced for an amount larger than you owed and took cash. 

rittiar
New Member

Question about refinanced mortgage

I understand, but in what timeframe?  I refinanced in 2011 and took cash out at that time due to a divorce...I had to pay my ex-husband his share of the equity.  The new loan (origination date of 11/20/2011) is in my name only, which is an "original loan" with the buyer being only me.  My understanding of the tax law is that this is allowable and I can still claim the full mortgage interest.  Is that correct?
KrisD
Intuit Alumni

Question about refinanced mortgage

That is correct. The "refinance" was technically, as you say, an original loan, and I assume there was a quit deed involved. As long as you did not refinance after 2011, answer no, you did not pull cash out. The cash you took was only up to the equity, so all the interest on your loan should be deductible. But going forward, you might need to be careful. You cannot refinance this loan for more than the loan amount in 2011 and claim all the interest.
rittiar
New Member

Question about refinanced mortgage

Thank you!
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