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Author Topic: Cash out Refi on Rental  (Read 1153 times)

Tbill

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Cash out Refi on Rental
« 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?
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MetalCap

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Re: Cash out Refi on Rental
« Reply #1 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.
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Drifterrider

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Re: Cash out Refi on Rental
« Reply #2 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).

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Bearded Man

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Re: Cash out Refi on Rental
« Reply #3 on: October 24, 2015, 08:31:14 AM »
No, its merely a transfer of assets in exchange for liability.
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