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kobleski
New Member

Did cash out refi to buy out my ex-wife's interest in our home. All money taken above remaining principle goes to her. Is interest on new loan deductible under new laws?

All proceeds from the refinance that are above the remaining principle, will go to my ex-wife solely for the purpose of buying out her interest in this property, and are not part of any other financial settlements of the divorce.
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1 Reply
DDollar
Expert Alumni

Did cash out refi to buy out my ex-wife's interest in our home. All money taken above remaining principle goes to her. Is interest on new loan deductible under new laws?

What you did was, purchase your wife's interest in your house.  So, as long as your mortgage otherwise qualifies, all of the interest is deductible.

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