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?
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.