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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Tbill on October 21, 2015, 09:49:51 AM

Title: Cash out Refi on Rental
Post by: Tbill on October 21, 2015, 09:49:51 AM

If i refinance a rental property and take out cash, would I have to pay income tax on the funds I receive?

Title: Re: Cash out Refi on Rental
Post by: MetalCap on October 21, 2015, 10:21:40 AM

I haven't conducted one yet but from my readings on BP and elsewhere, no this is not taxed, it is moving a portion of an asset from illiquid to liquid.

Title: Re: Cash out Refi on Rental
Post by: Drifterrider on October 21, 2015, 01:04:41 PM

Quote from: Tbill on October 21, 2015, 09:49:51 AM

If i refinance a rental property and take out cash, would I have to pay income tax on the funds I receive?

No.  It is not income.  (If you are in the US).

Title: Re: Cash out Refi on Rental
Post by: Bearded Man on October 24, 2015, 08:31:14 AM

No, its merely a transfer of assets in exchange for liability.