Question by jmr08260: do i pay any taxes on a cash out from a mortgage refinance?
i want to refinance my existing mortgage and take out some cash do i pay taxes on the cash
Answer by ggaryusa
No, you are actually borrowing it
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You do not pay taxes on money borrowed as long as you pay it back.
I don’t know. I am not American.
No. It is a loan so no taxes on it. You must pay it back. Have you refinanced before? If you refinance your mortgage becomes a recourse loan and if you are foreclosed on the mortgage company can sue you for it. You cannot walk away from it. If they forgive it then it becomes taxable income.
No, that’s a loan that you have to pay back to the lender, it isn’t income to you, and you don’t pay any tax on it.
You won’t have to pay taxes on the borrowed money from a refi, but you can’t deduct the interest on any amount that you used for something other than improving the property or maintenance.
In other words, if you draw money out of the equity on real estate to buy a car or take a vacation, the interest on that money is no longer tax deductible.
No – you pay interest on it to the lender.
You do not have a sale.