Cahout Taxed As Income?
If I buy a foreclosure at 100k thats worth 180k the refi some cashout to 160k. DO I still pay income tax on the cashout? I know I will on the proceeds if I sell it, just not sure about my cashout.
If I buy a foreclosure at 100k thats worth 180k the refi some cashout to 160k. DO I still pay income tax on the cashout? I know I will on the proceeds if I sell it, just not sure about my cashout.
No a cashout is not taxable,but will be taxed when you sell the property. It will also be taxed at capital gains rate(20%) if you hold the property over 1 year. <IMG SRC="images/forum/smilies/icon_wink.gif"> [ Edited by MichaelChandler on Date 02/08/2004 ]