I refinanced my home in 2006 with cash back for home improvement, will I get penalized on my tax refund?

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I refinanced my home in 2006 with cash back for home improvement, will I get penalized on my tax refund?

I do my own taxes as well, will this make it more difficult for me? I just use TurboTax.

2007-01-05 08:24:19 · 3 answers · asked by Barrypu 2 in Business & Finance ➔ Taxes ➔ United States

3 answers

The loan cash back is not taxable. If you itemize deductions your mortgage interest deduction should be higher which is good.

2007-01-05 08:42:39 · answer #1 · answered by spicertax 5 · 1⤊ 0⤋

The only possible way it will negatively affect your taxes is if the loan is more that your house is currently worth. The interest that you can claim is limited to the actual value of your house.

2007-01-05 10:42:07 · answer #2 · answered by Steve 6 · 1⤊ 0⤋

it should not espcily if you have the upgades reciepts. no not at all

2007-01-05 08:28:19 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋