Will I receive a 1099 for a cash-out mortgage refinance?

In: Mortgage Refinance

3 Feb 2010

I am refinancing my mortgage to consolidate debt. The current mortgate and HELOC are listed in the mortgage documents, but the other loans, ie credit cards, student loans are not listed and will be paid from the cash I receive at close.
Is the cash-out portion considered income that I will have to pay income tax on?



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2 Responses to Will I receive a 1099 for a cash-out mortgage refinance?

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acermill

February 3rd, 2010 at 5:15 am

No, it is not income. It is a loan, which must be repaid. Hence no 1099.

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Adoptive Father

February 3rd, 2010 at 5:37 am

No. Cash out is not income. Interest earned on a deposit account is income and will generate a 1099 to you and the IRS.

Hope this helps.

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