Discussion:Taxes on Home refinance for appreciated value
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Discussion Forum Index --> Tax Questions --> Taxes on Home refinance for appreciated value
Www.cpa1.biz (talk|edits) said: | 27 October 2006 |
| Almanacers,
An example, Someone buys a house for 100k and it appreciates to 500k. If that person gets a home equity loan against the difference of 400k and uses it for investment into a another home, is there any capital gain tax on this 400k. I know that 500k(married) is excludable if you sell your house with a gain but this is a refinance. Also, if it was over the 500k for refinancing is anything over the 500k refinance difference a capital gain? Another example, lets say the same thing happened but the refinance money was spent for cars, boats, fun stuff instead of a house or house fixture. Would that even matter. Thanks a lot. Bj | |
| 27 October 2006 | |
| Capital gain is not generated until the property is sold. What the refinancing proceeds are used for does not matter. | |
Www.cpa1.biz (talk|edits) said: | 27 October 2006 |
| Thanks TAX NFP...have a good weekend... | |
Chautauqua (talk|edits) said: | 28 October 2006 |
| Taxnfp is correct. Financing, refinancing, no financing, all have no bearing whatsoever on gain or loss. Look at original cost, improvements, sale price and cost of sale to determine gain or loss. | |
