Refinance tax implications

[Yoni Haiminis]

I am looking to do a cash out refinance on a property that has a lot of equity into it. Probably gonna pull out $75K.  What are the tax implications on a cash out? Is this taxed like a regular income, capital gains, etc?

[Steven Hamilton II]

Originally posted by @Michael Plaks:

@Lance Lvovsky and @Steven Hamilton II

Colleagues, how much success have you had explaining the interest tracing rules to your clients and essentially "stealing" from them part of 1098 deduction? Do you feel it is worth fighting clients on behalf of the IRS over this particular rule? 

 You need to prepare a true and accurate tax return.