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December 04, 2021, 07:30:48 pm
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December 04, 2021, 07:30:48 pm
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Author Topic: taxes on refinancing  (Read 2520 times)

Offline papafang

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taxes on refinancing
« on: February 11, 2006, 06:17:28 am »
Hello everyone,
Is the money from refinancing of a property taxable?  I have 32,000 in my residential property that I am planning to pull out.  Of that 20,000 will be going back into improving the property itself.  The other 12,000 I was hoping to use for myself.  

What kind of tax issue will I be facing?  How much would I be paying?
Michael Fang
312-804-3670
[email protected]

mtnwizard

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Re:taxes on refinancing
« Reply #1 on: February 11, 2006, 07:28:10 am »
Borrowed money is not taxable.  You will not be taxed until you sell or transfer your property.  

Offline papafang

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Re:taxes on refinancing
« Reply #2 on: February 11, 2006, 09:48:20 am »
Thank you mtnwizard.  
Michael Fang
312-804-3670
[email protected]

Offline bellesguy

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Re:taxes on refinancing
« Reply #3 on: March 06, 2006, 11:36:48 am »
If you are taking a mortgage in connection with the refinancing you may be subject to State Mortgage tax.

That is a tax based upon the size of the mortgage taken.  This is so in New York (.012%) and in Virginia (.0075) and I am sure in several other states.  It is not an income tax.
Arnie Gallay, Pan Am Mortgage
261 Madison Avenue
NY, NY 10016
646-442-4808
[email protected]

Offline papafang

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Re:taxes on refinancing
« Reply #4 on: March 06, 2006, 03:19:22 pm »
Hi Arnie.  Can you explain a little more what you mean by taking on a mortgage in addition to the refi?
Michael Fang
312-804-3670
[email protected]

Offline bellesguy

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Re:taxes on refinancing
« Reply #5 on: March 07, 2006, 08:10:10 am »
I only meant that if you take a mortgage, you may pay mortgage tax in certain states.  I did not mean to say a mortgage in addition to refinance.
Arnie Gallay, Pan Am Mortgage
261 Madison Avenue
NY, NY 10016
646-442-4808
[email protected]

 




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