|
#5
08-11-2005, 01:52 AM
| |||
| |||
 Re: Refinance "Alex P Limbert CPA" <alexlimbert[at]sbcglobal.net> wrote: - quote - > A mortgage broker told me that all interest on refinance
The excess amount borrowed (over the old balance) won't be> mortgage is deductible, but I read that only the interest > based on the old principle balance was deductible unless the > amount borrowed in addition to the old outstanding balance > was used to renovate the house or the amount qualified for a > home equity loan? > Who is right? "home acquisition debt", but it might be "home equity debt" and thus the interest would still be deductible, subject to the $100,000 limit on home equity debt (note that there is also a limit based on the FMV of the home: max equity debt = FMV - aquisition debt). Also note that points paid on any part of the refi proceeds not used to improve the home generally must be amortized over the life of the refi loan, and that interest paid on the amount refinanced in excess of the original balance is treated differently for AMT purposes. Whit Matteson, EA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#4
08-07-2005, 04:16 AM
| |||
| |||
| Re: Refinance Alex P Limbert CPA wrote: - quote - > A mortgage broker told me that all interest on refinance
The author of the article you read is correct. The broker is> mortgage is deductible, but I read that only the interest > based on the old principle balance was deductible unless the > amount borrowed in addition to the old outstanding balance > was used to renovate the house or the amount qualified for a > home equity loan? > Who is right? wrong. -- Alan http://taxtopics.net << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#3
08-07-2005, 04:16 AM
| |||
| |||
| Re: Refinance Alex P Limbert CPA wrote: - quote - > A mortgage broker told me that all interest on refinance
From pub 936, at www.irs.gov/pub/irs-pdf/p936.pdf> mortgage is deductible, but I read that only the interest > based on the old principle balance was deductible unless the > amount borrowed in addition to the old outstanding balance > was used to renovate the house or the amount qualified for a > home equity loan? > Who is right? Refinanced home acquisition debt. Any secured debt you use to refinance home acquisition debt is treated as home acquisition debt. However, the new debt will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing. Any additional debt is not home acquisition debt, but may qualify as home equity debt (discussed later). The broker was correct only if he understood that you were refinancing only the remaining principle, and not borrowing extra funds. Otherwise, well, he's a salesman. JOE << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#2
08-07-2005, 04:16 AM
| |||
| |||
| Re: Refinance "Alex P Limbert CPA" <alexlimbert[at]sbcglobal.net> wrote: - quote - > A mortgage broker told me that all interest on refinance
You are. The broker was too general in his comment.> mortgage is deductible, but I read that only the interest > based on the old principle balance was deductible unless the > amount borrowed in addition to the old outstanding balance > was used to renovate the house or the amount qualified for a > home equity loan? > Who is right? -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#1
08-07-2005, 03:38 AM
| |||
| |||
| Re: Refinance "Alex P Limbert CPA" <alexlimbert[at]sbcglobal.net> wrote - quote - > A mortgage broker told me that all interest on refinance
Interest on the re-fi, up to the original purchase price,> mortgage is deductible, but I read that only the interest > based on the old principle balance was deductible unless the > amount borrowed in addition to the old outstanding balance > was used to renovate the house or the amount qualified for a > home equity loan? and another $100,000 of equity debt are deductible for regular tax. -- Paul A. Thomas, CPA Athens, Georgia taxman at negia.net << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
08-07-2005, 03:19 AM
| |||
| |||
| Re: Refinance You all both partially right. Interest on the first $100,000 of cashout is deductible. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
|
#-1
08-05-2005, 12:57 PM
| |||
| |||
| Refinance A mortgage broker told me that all interest on refinance mortgage is deductible, but I read that only the interest based on the old principle balance was deductible unless the amount borrowed in addition to the old outstanding balance was used to renovate the house or the amount qualified for a home equity loan? Who is right? Thanks. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
| Tags |
| refinance |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Refinance Mortgage Mark Bruso: Hi, Are there any step by step instructions on how to refinance a mortgage. For example pay off one loan and start another loan. Thanks! | Microsoft Money | 2 | 04-17-2005 05:52 AM | |
| Tax consequence on refinance Mauibob: My question is on a refi on a commercial property. S-Corp owner. Under normal circumstances - is this considered a taxable event with the S-corp... | Taxes | 1 | 03-06-2004 07:14 AM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
