I'm new (sort of) with refi/tax question

lindy_444_2009June 17, 2009

Hello ... haven't posted at That Home Site in a few years ... thanks in advance for your replies ...

My husband and I just refinanced our house and cashed out some equity to pay off credit card and auto loan debt. Yay, it is good to be free of that! My question is whether the equity we took out (about $50,000) will be taxable income for 2009.

Lindy

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dave_donhoff

Lindy,
No... its debt, not income. You don't get to "keep it"... you have to pay it back (but you do get to deduct the mortgage interest, most likely.)

NOW... keep those credit cards zero-balanced from here ;~)

Cheers,
Dave Donhoff
Leverage Planner

    Bookmark   June 17, 2009 at 5:34PM
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stargazzer

Yeah, don't use those cards. If I had to give one reason alone why I am so financially well off it is because I kept us out of debt. Car and home were the only long term debt we had and we bought wisely and paid off early than we had to.

    Bookmark   June 17, 2009 at 6:11PM
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