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on Saturday, May 9th, 2009 at 4:27 pm and is filed under Home Equity Loan Q&A.
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2 Responses to “How Does Doing A Cashout Refi Or Home Equity Loan Affect Amt Risk?”
you will not be taxed on any loan amounts…if you hold that money in the bank, the interest it may earn is taxable though.
a loan is not income….you have to pay it back….it will not become income even if you buy a car with it. but if you buy a car with it, the interest you pay on it is not deductable.
The risk is that you must keep very careful track of your loans. Any money from a refi/2nd that *isn’t* used to improve your home is added back to your income for AMT purposes.
you will not be taxed on any loan amounts…if you hold that money in the bank, the interest it may earn is taxable though.
a loan is not income….you have to pay it back….it will not become income even if you buy a car with it. but if you buy a car with it, the interest you pay on it is not deductable.
The risk is that you must keep very careful track of your loans. Any money from a refi/2nd that *isn’t* used to improve your home is added back to your income for AMT purposes.