Jun 9, 2025 · The IRS considers these one-time fees as part of the cost of getting a loan – not interest – so you cannot deduct them. You also typically can’t add them to your home’s cost basis either (since …

The accounting for any unamortized net fees or costs associated with a loan refinancing or restructuring depends on whether the refinancing or restructuring is a new loan or a modification.

Dec 31, 2024 · Some interest can be claimed as a deduction or as a credit. To deduct interest you paid on a debt, review each interest expense to determine how it qualifies and where to take the …

Aug 13, 2025 · Because the IRS considers a cash-out refinance to be a form of debt restructuring, the cash you receive is considered a loan, not income, and is not taxed. In addition, you could receive …

Oct 8, 2025 · Compare offers from vetted cash-out refinance lenders and confirm how much equity you can access for qualifying improvements.

If you refinance your investment property loan, there may be additional tax benefits. Refinancing can lower your monthly payments and increase your cash flow, but it can also result in tax deductions for …

We'll discuss some of the deductions you can claim on your federal taxes after refinancing and how long you can claim them. Some Tax Deduction Rules. A deduction is an expense that can reduce your tax …

Nov 1, 2025 · Settlement fees and closing costs for refinancing your primary residence usually aren't deductible. Refinancing typically involves taking out a new loan to pay off your existing home loan, …

Jul 8, 2024 · Unfortunately, the general rule is no, they cannot be deducted. Refinancing is treated as repaying old debt, not acquiring new debt. Therefore, the loan costs are not deductible expenses …