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Old 11-13-2017, 12:36 AM
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Refinance co-owned home and add to equity

My wife and I bought a home with her parents a little over a year ago. The four of us are on the mortgage and deed. Only my wife and I live in the home. What are the tax implications if we refinance the home and my in-laws add $200,000 towards the equity of the home, thereby reducing the mortgage?



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Old 11-14-2017, 05:02 AM
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My wife and I bought a home with her parents a little over a year ago. The four of us are on the mortgage and deed. ===>>As you can see, all of you can claim mortgage interest expenses on your returns aslongas You have secured debt(you are on the mortgage) on the qualified home in which you have an ownership interest. And you must file your federal income taxes using Form 1040 and itemize deductions on Sch A. Paying Mortgage Interest Can Reduce Your Taxable Income/liability aslongas you itemize your deductions on Sch A of 1040. And it only makes sense to itemize if the sum of your individual deductions exceeds the standard deduction of$12,700 for 2017.


Only my wife and I live in the home. What are the tax implications if we refinance the home and my in-laws add $200,000 towards the equity of the home, thereby reducing the mortgage?=======>>NO certain tax implications; reducing the existing mortgage means you'll be able to deduct lower your mortgage interest.



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