Do you pay taxes on a cash out refinance? That’s what Brandon is asking on the Real Estate Rookie Facebook Group. Brandon wants to know whether or not a cash-out refinance is considered income, and if so, how would he report it on his taxes?
Real estate investing provides a lot of tax benefits, some that new investors or everyday homeowners simply don’t know about. One of the greatest tax benefits? No taxes on loans and liabilities! That means that the cash-out refinance can be done without paying any taxes on the cash given to you from the bank. But, there are a couple of ways that you could get snagged during tax season if you don’t follow the right steps.
As always, if you have any questions or concerns about how a cash-out refinance would affect your yearly tax burden, be sure to reach out to a tax professional. They may be able to help you avoid some big tax bills when trying to move cash-out refi money from your business to your personal accounts!
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Question of the Episode 👇 / 445988419781518
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What Is a Cash-Out Refinance?
www.biggerpockets.com/glossar...
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Cash-Out Refinances vs HELOCs:
www.biggerpockets.com/blog/ro...
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Stop! Before You Refinance, Consider These Tax Traps & Opportunities:
www.biggerpockets.com/blog/ta...
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Episode 202
Show notes at: www.biggerpockets.com/blog/ro...
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