Is extra money taken out of a refinance taxable?

Kirk A asked:


I want to refinance my house and take 40k out for a down payment on a rental property. Is the 40k taxable if I use it for the down payment?

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Tags: Extra Money, Refinance House, Rental Property

This entry was posted on Tuesday, February 24th, 2009 at 7:33 pm and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Is extra money taken out of a refinance taxable?”

1. kckid2 Says:
   February 28th, 2009 at 4:04 am

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   It is not taxable because it is not income.

2. Amanda Beth Says:
   February 28th, 2009 at 11:38 pm

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   It is not considered income, so it is not taxable unless it is gaining interest. If you are using the money for nothing related to the reason you got the loan you should pay it back otherwise you are going to pay for it three times over by the time you have it paid down. Right now is not a good time to borrow money to pay bills or to buy foolishly. The economy is entirely too unstable

3. Culture Warrior Says:
   March 1st, 2009 at 6:06 am

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   Not at all.

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