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Cash out refinance. I used the cash to pay debt not improvements. Do I just do the math myself & put in number in software or is there another form to use?
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Cash out refinance. I used the cash to pay debt not improvements. Do I just do the math myself & put in number in software or is there another form to use?
@miner_house - it is rather easy to calculate.
1) take the balance just prior to the cash out refi (i.e. the amount you paid off on the old mortgage) times the interest rate on the new mortage times the number of days the new mortgage was outstanding during the year divided by 365. THAT is deductible as it is the 'aquisition debt'.
2) the remainder is not tax deductible.
Same formula each year going forward. The not tax deductible amount will drop every year.
I am assuming the new mortgage amount is below $750,000. I also assume this is was on your personal residence. I also am assuming you did not do a cash-out refinance any other time you owned this home.
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Cash out refinance. I used the cash to pay debt not improvements. Do I just do the math myself & put in number in software or is there another form to use?
Not sure what number you are referring to but you can’t deduct the interest payments from that refi.
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Cash out refinance. I used the cash to pay debt not improvements. Do I just do the math myself & put in number in software or is there another form to use?
cash out refi of your home or something else?
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Cash out refinance. I used the cash to pay debt not improvements. Do I just do the math myself & put in number in software or is there another form to use?
@miner_house - it is rather easy to calculate.
1) take the balance just prior to the cash out refi (i.e. the amount you paid off on the old mortgage) times the interest rate on the new mortage times the number of days the new mortgage was outstanding during the year divided by 365. THAT is deductible as it is the 'aquisition debt'.
2) the remainder is not tax deductible.
Same formula each year going forward. The not tax deductible amount will drop every year.
I am assuming the new mortgage amount is below $750,000. I also assume this is was on your personal residence. I also am assuming you did not do a cash-out refinance any other time you owned this home.
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Cash out refinance. I used the cash to pay debt not improvements. Do I just do the math myself & put in number in software or is there another form to use?
Thank you! Perfect answer. I will do the math!
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