Re Investor
“I successfully refinanced my investment property and pulled out cash to buy another one, is that massive cash out legally considered taxable income?”
A refinance with cash taken out is often treated differently from selling property, so the tax result can depend on how the loan proceeds were used, how the investment property is held, and whether the transaction stayed within borrowing rather than triggering a realization event. For an investment property, the rental history, basis, and any interest tracing can also matter when the cash is used to buy another property. The answer often turns on the structure of the refinance, the timing of the purchase, and the records showing the funds moved from one investment to another. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 30-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“I flipped a severely distressed house in less than a year, will my massive profits be taxed as ordinary income or short-term capital gains?”
“I am selling a highly profitable rental property and want to use a 1031 exchange, exactly how long do I have to officially identify a replacement property?”
“I own multiple rental properties that generate massive passive losses, can I use those losses to offset my W-2 salary if I qualify as a real estate professional?”
“I regularly rent out a spare room in my house on Airbnb, how do I accurately report the income and what specific household expenses can I legally deduct?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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