Cash out refinance

Forum|Forum|4 years ago
March 27, 2022
1 reply
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I had a cash out refinance in 2021 and placed the money into my savings for future home repairs, etc.

1. Can I claim the entire amount of interest that's listed on my 1098 from that refi on my taxes? Because I am having an issue with some of the Turbo tax questions.

2. For example, when it asks if I took cash out on the refi? I answered yes,

How do I answer the next question "have I used the money from this loan exclusively on this home, which includes the lifespan of the loan, etc.? If I answer no, I don't get to claim all of my mortgage interest paid.

Please let me know.

Bsch4477

You haven’t used or have plans now to use the money for home costs so you can’t deduct the interest. Putting the money in a savings account for use at some undermined time would probably not pass an audit