2007-04-05 15:17:16 · 3 answers · asked by jwtippens 1 in Business & Finance ➔ Taxes ➔ United States
It's not income. You traded a loan (a future promise to pay) for cash today. That's NOT income until you Sell the house. And even then, it may not be taxable income.
2007-04-05 15:27:42 · answer #1 · answered by WealthBuilder 4 · 0⤊ 1⤋
The cash that you receive at closing on a refinance is "not" includible as income on your personal taxes. The cash you collect at closing, is really,
a "return of capital" or a return of the cash you have previously invested.
Returns of capital are never includible as income.
When you do refinance, however, make sure you claim the deductions for
points (Schedule A, Mortgage Interest). Real Estate Taxes and Intangible Taxes are also available to claim as deductions from the closing. Most
other items on a close relate to basis, and are not deductible.
2007-04-06 09:47:01 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋
Refinancing with cash back is a loan to you, and the cash back isn't income and isn't reported on your tax return.
2007-04-05 23:31:18 · answer #3 · answered by Judy 7 · 0⤊ 0⤋