All Forum Posts by: Matt N.
Matt N. has started 5 posts and replied 12 times.
Unfortunately my own CPA doesn't seem to really know as well..
What's interesting is that the cash used/traced will be utilized for non-rental purposes. However, the COST of the cash out refi INTEREST will be on an investment property, which is causing the confusion. Is it perfectly okay to utilize this interest and deduct it from my rental income on Schedule E?
Will IRS be sent a 1098 for cash out refi and will it look the exact same as a regular mortgage?
Question: I am taking out a cash out refi on my condo that I had originally paid in all cash. I've read that the interest from the cash out refi mortgage is NOT tax deductible UNLESS it is used for improvements for the home. However, I was hoping to do a cash out refi for a rental property, then use the capital from the cash out to invest either in stocks or another property. From there, I was hoping to deduct the interest expenses from Schedule E.
Would a CPA or anybody else be able to help clarify?