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July 26, 2020
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Is the cash taxable that I receive in a cash back refinance of a rental home I own?

  • July 26, 2020
  • 2 replies
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I am refinancing a rental home I own and taking cash out.  Is that cash taxable?
Best answer by DoninGA

The cash back you receive from a refinance is not taxable income.

2 replies

DoninGA
DoninGAAnswer
Employee
July 26, 2020

The cash back you receive from a refinance is not taxable income.

Carl11_2
Employee
July 26, 2020

No. It's not taxable.

However, if you did not use the cash out money to improve the rental property that secures the loan, you can not claim or deduct the interest on it.