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?
Asked by:Chris
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No, it is not income. It is a loan, which must be repaid. Hence no 1099.
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.