Posted on: 29th Jan, 2010 06:54 am
I bought a house with full cash upfront (no mortgage). Now I want to borrow some money. What is the tax treatment of this loan? Will I need to pay taxes on the cash that I am receiving. Are the interest payments from the mortgage tax deductible from my income (as in the regular mortgages)?
I appreciate your help.
I appreciate your help.
You will not pay taxes on the cash out. You will pay interest and that may be tax deductible. Contact a tax professional to discuss your scenario in your state.