2007-01-04 13:35:51 · 9 answers · asked by Gagandeep S 1 in Business & Finance ➔ Renting & Real Estate
I need to understand the question before I can give you an
intelligent answer. I am assuming you now own a piece of
property? And you intend to refinance it? And if you get
the $$$ you need, lets say $100,000. Would that money be
considered a capital gain.?
Answer: No It does not fit the definition of a capital gain. Why:?
Lets say you bought a house at $85.000. and prices skyrocketed. You sold this house at $250,000. Then the
amount of increase, or $60,000 would be considered capital
gain. Most states do require a tax on the gain, BUT there
is a liberal leeway before being taxable. Here in Cal.
I believe its all profits over $150,000. Please some Acct
out there, tell me if these figures are wrong.
2007-01-04 13:46:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
To answer your question, No that is not capital gain. If you currently own a home with a 1st mortgage and your property value has appreciated and you now wish to take a 2nd loan that is considered a Home Equity Loan. Usually most lenders will not let the 1st and 2nd mortgage exceed 100% of the appraised value. Hope this helps.
Clinton Shepherd
Wachovia Home Loans
2007-01-04 17:02:03 · answer #2 · answered by Clinton S 1 · 0⤊ 0⤋
No. Capital gains are only taken from the PROFIT when you sell your house but as long as you have lived in it for 2 years you are exempt from $250,000 of profit. $500,000 for a married couple.
2007-01-04 13:38:51 · answer #3 · answered by EmmaHersh 2 · 1⤊ 0⤋
No, since you now owe the money on a loan, it is interest free. If you are going to refi, you should try to apply with eloan, they will do the best job with it. They have a promotion now, If you use this link http://www.tkqlhce.com/click-2177451-10427742 they will waive the lender fees.
2007-01-04 14:53:10 · answer #4 · answered by insureman613 3 · 0⤊ 0⤋
It isn't capital gain until you sell the property.
2007-01-04 13:38:16 · answer #5 · answered by ShaneMortgage 2 · 0⤊ 0⤋
no its considered borrowed money, because your loan will be higher than your balance owed on previous mortgage,you can roll over fees into mortgage if your income allows it.
2007-01-04 13:39:48 · answer #6 · answered by crazy b 3 · 0⤊ 0⤋
nope, not for long anyway
most people don't count it that way, including accountants and the IRS
2007-01-04 13:38:06 · answer #7 · answered by kurticus1024 7 · 0⤊ 0⤋
No, that's taking a loan.
2007-01-04 13:38:19 · answer #8 · answered by John's Secret Identity™ 6 · 0⤊ 0⤋
no
2007-01-04 13:37:26 · answer #9 · answered by george 2 6 · 1⤊ 0⤋