Question:

Cash-out refinance tax – is there tax to pay on that cash?

Answer:

There shouldn't be tax expected on your cash after a cash-out refinance if your new mortgage exceeds the market value of the property, which it probably does. Just the opposite, you may get to deduct the interest from your income taxes in most of the cases.

Recommended:

However, it will be best if you consult your tax advisor in that case. It is in fact loan money that has to be paid back and is not considered income, but you really should better contact a tax specialist with respect to cash-out refinance taxes.

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