jhffarefax
2007-08-27 08:52
I have a rental that I want to pull the equity out of, if I refinance it Will that be considered income, I need to replace roof and do several other repairs to it?
Thanks
I have a rental that I want to pull the equity out of, if I refinance it Will that be considered income, I need to replace roof and do several other repairs to it?
Thanks
Nope, borrowed money is tax-free; however, when it comes time to get a write-off on the work you do, you will have to distinguish between "repairs" and "improvements." While repairs can be written off in full the year you pay for them (even if you use a credit card and actually don't "pay" them off in full or at all), improvements to the property (like replacing the the roof), have to be partially written off over a number of years as dictated by an IRS schedule (depreciation).
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"A deal is only as good as the quality of your Contracts." --Me
[ Edited by LeaseOptionKing on Date 08/27/2007 ]
[ Edited by LeaseOptionKing on Date 08/27/2007 ]