When you refinance a home to get cash, is the money taxable as income?

Answer by  ethelbertIII (30)

Proceeds from loans of any kind are not considered income, and therefore are not taxable. The only effect a home equity loan or second mortgage may have on your taxes is that the interest you pay on the loan as well as any points or fees are tax deductible if you itemize deductions.

Answer by  Kurt (4579)

No. The proceeds from the refinancing are from a loan. This is not income. This is money that you will have to repay. Loan proceeds are not income and are not taxable.