I refinanced my home and pulled 30k... do I have to report it as capital gain, or any other way? or don't?

Question

I refinanced in october of '06 and pulled 30k... is that capital gain?, is it taxable in any way, it's my primary and only residence and its in SoCal.

Any ideas??


Thank you.

Answer 1

Well, you did not sell your home, so therefore, the
30K is not profit, nor is it capital gains.
On the other hand, you now have 30K that you did
not have before. How to claim it?

You don't have to. It's a loan and you will be paying
it back -plus,plus,plus INTEREST! Actually, the
mortgage company should be paying you for all the
money you will be giving them. You don't owe
anybody anything but your new house loan.
WOW, I almost forgot something. You are now
paying interest--keep a close accounting of how
much int. you pay per year--and that is deductible
on your income tax. What % depends on your state. Call H R Block and they may tell you the %.

Answer 2

No, capital gain is when you sell for more than you paid.
You sold nothing, you gained nothing . . .
That "pull", as lenders like to call it (to sucker borrowers in), was a LOAN and you are $30K farther in debt, $30K farther from actually owning the home .
What you can do is list the extra % ($$ down the commode) in the property % deduction section.
(a recovery of about 15% via tax relief, of what you are flushing via extra % payments)

Answer 3

No, it's not a capital gain, but depending upon the value of your home it could affect the deductibility of your interest on the refinanced loan.

Answer 4

in case you lived in that smaller abode for 2 of the previous 5 years it is going to nevertheless be eligible for as much as $250,000 capital earnings exclusion ($500,000 married submitting together). yet based upon how the condominium replaced into dealt with, there could be depreciation recapture. For investment property there is something called a 1031 replace in case you will use the proceeds to purchase different investment property. yet that ought to be dealt with exact from the 2d you sell the valuables. once you sell this is purely too overdue to do something approximately that. in any different case in case you owned it for over a 300 and sixty 5 days, the capital earnings could be taxed on the decrease long term fee.

Answer 5

One thing to keep in mind as well.....when you do a cash out refinance, this will trigger an adjustment for alternative minimum tax purposes. The mortgage interest related to the amount of equity cashed out is not deductible for alternative minimum tax purposes.

Answer 6

NO. Because if something happens to the housing market and your house lost 100,000 in value, that 30,000 was not a gain in any sense of the word.
It is only a loan.

Answer 7

Be confident it is not a Capital Gain because you have to sell to have a capital gain. It was not sold.