tax question on refi

[Harsh Dangaria]

Hi BP family.

Quick question:

Lets say, I paid $100K cash for a property purchased under a LLC. Few months later I refi'ed the property at a slightly higher amount and the bank paid the llc back $120K.

If I use the $120K in the business account and use the money to purchase another property with the same LLC, does that create any tax issues?

Alternatively, If I use the $120K in the business account and use the money to purchase another property with A DIFFERENT LLC, does that create any tax issues?

Alternatively, If I use the $120K in the business account and pay myself the $120K (ie deposit the money into my personal account), does that create any tax issues?

Thanks,

HD

[Ben Raygor]

I agree with @Michael Plaks on this one.  The government cares about what the loan funds were used FOR, not necessarily which piece of real estate secures the loan and shows up in Box 8 of the Form 1098-MIS "Address of property securing mortgage". 
A lot of people think that simply replenishing their personal checking account with a refinance has the same tax implications as if they purchased the rental property with a loan to begin with.  This is generally not the case (although there might be an allowance depending on the number of days between purchase and refinance - Notice 89-35, 1989-1 CB 675).