Refinancing tax's if rolled into another property

[Noah Weitzman]

Hello! Thanks for taking the time to help with this. Was wondering if similar to a 1031 exchange for selling a property if there was a vehicle for a tax-free refinance if you refinanced a property and used that new cash to purchase another property? 

Thanks for the help!

Noah

[Michael Skoczylas]

@Noah Weitzman In that situation I do not see how you would have any tax. This is assuming that your distributions on the refinance are not in excess of basis. I think the refinance and using the proceeds for a new property is an excellent idea, and should be tax-free.