Will I receive a 1099 for a cash-out mortgage refinance?

Chris asked:


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?

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Tags: Heloc, Mortgate, Refinancing Mortgage

This entry was posted on Monday, October 20th, 2008 at 10:33 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Will I receive a 1099 for a cash-out mortgage refinance?”

1. acermill Says:
   October 23rd, 2008 at 8:31 am

   No, it is not income. It is a loan, which must be repaid. Hence no 1099.

2. Adoptive Father Says:
   October 24th, 2008 at 7:47 am

   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.

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