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Rental cash out refi. Is there any tax if the new loan exceeds the adjusted basis?

IMATAXMAN
Level 2

Cash out rental refi- Is there gain if the new loan exceeds the adjusted basis of the property?

Also, is the interest deductible only to the adjusted basis and the remaining consumer or investment?

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TaxMonkey
Level 8

Assuming this is an individual with a rental property.  The loan is not taxable and the interest is not deductible.unless used to buy, build or improve the property.

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1 Comment 1
TaxMonkey
Level 8

Assuming this is an individual with a rental property.  The loan is not taxable and the interest is not deductible.unless used to buy, build or improve the property.

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