www.ChadPeshke.com
  • Services
    • Tax Preparation
    • Home Loans
    • Personal Finance Coaching
  • About Us
    • Meet Chad
    • Meet Emilie
    • Chad's Story
  • Client Resources
    • Tax Resources
    • Home Loan Resources
    • Financial Coaching Resources
  • E-News
  • Client Reviews
  • Contact Us
  • Services
    • Tax Preparation
    • Home Loans
    • Personal Finance Coaching
  • About Us
    • Meet Chad
    • Meet Emilie
    • Chad's Story
  • Client Resources
    • Tax Resources
    • Home Loan Resources
    • Financial Coaching Resources
  • E-News
  • Client Reviews
  • Contact Us
Search by typing & pressing enter

YOUR CART

E-News

Making Finances Simple. Changing Lives.

8/4/2016

Home Refinancing & Your Taxes

We’re often asked about the affect Refinancing can have on Property Taxes and Income Taxes....
Property Taxes:
While refinancing often dictates the need for an appraisal on the home, the appraisal has no effect on Property Tax rates. The county does not reassess property taxes based on the results of a refinance appraisal.
 
Income Taxes:
Refinancing can have multiple implications on income taxes.
 
Any “points” (essentially pre-paid interest) paid to obtain a home loan are deductible as an itemized deduction. Refinance points are deductible over the life of the loan, not necessarily all at the time of refinancing. However, if you incurred fees for points on the loan being paid off, the remaining unused points’ deduction on that loan all become deductible at once in the year your refinance closes.
 
Also, it’s important to note that a reduction in rate will often result in less annual mortgage interest, which can reduce itemized deductions.
 
Lastly, always be sure to give the final closing/settlement statement to your tax preparer from your refinance, especially if you have an impound account for property taxes. This form may show that property taxes were paid through the loan; an expense you may not have otherwise thought to give your tax preparer. This form also shows the above-referenced points paid, as well as interim interest that may not reflect on your mortgage company’s 1098 tax form.
 
Feel free to contact us with any questions about refinancing, and the resulting tax impact...we’re here to help!


Comments are closed.
CALL:
​(877) 970-9400
​
FAX:
​(877) 970-9401
FREQUENT:
Home Page (Services)
Send Documents Securely
Pay Your Invoice
LICENSURE:
See Individual Profiles
LOCATIONS:
​Mission Viejo, CA
Meridian, ID
​​Copyright © 2022 Chad Peshke LLC, All rights reserved. NMLS #2244878. Material contained in this website is for informational purposes only and is not meant to be construed as direct financial advice for your specific situation. It's recommended that you consult with your own advisors for personalized financial guidance. Since we're not licensed attorneys, we cannot provide legal advice. As such, any info contained in this website should not be construed as direct legal advice. While Chad Peshke LCC is registered/approved with CA & ID, the trade name "CP" is not approved to be used in ID. This has no impact on our ability to legally do business in CA & ID as Chad Peshke LLC.