Since it is a loan and we pay interest on it I figured it would not create a tax problem, but as the end of the year approaches I'm getting nervous. Am I right it is not considered income? I understand the interest it earns IS taxable. The amount is $60,000. Thanks!
2007-12-16 04:58:46 · 4 answers · asked by mary e 2 in Business & Finance ➔ Personal Finance
If you refinanced your house and took equity out, it is not taxable income.
2007-12-16 05:03:09 · answer #1 · answered by Anonymous · 1⤊ 0⤋
When you mortgaged the house in the first place, was the loan taxable income. This is EXACTLY the same thing. NO loan is EVER taxable INCOME. If refinancing put money 'in the bank' you borrowed TOO MUCH. I can guarantee you are paying more interest TO the mortgage company than you are getting FROM the bank.
2007-12-16 13:10:18 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
This answer would depend on what country you come from, you really need to check that the answers are relevant to your own country however my husband says the money in the bank from a refinance is classed as loan funds, not income. Therefore it would be hard to assume that it would be taxed. We live in Australia however my husband thinks this would be the case in other countries also; but make sure you are getting the right information. However you are correct that the interest it earns IS taxable.
2007-12-16 14:44:42 · answer #3 · answered by T 3 · 1⤊ 0⤋
no it is not income. It is a loan. It is not taxable.
2007-12-16 13:03:29 · answer #4 · answered by Anonymous · 1⤊ 0⤋