Profile picture for bartoloferreiro

Refinancing house under water using capital gain money.

I bought my house for $80,000 more than what it was appraised last year when I refinanced.  In order to be able to refinance I took money from my IRA account; my question: Is it possible to avoid taxation on the money taken out of the IRA account considering that it was applied to a home that is not longer worth it?  Thank you.
  • January 19 - Mount Dora
  • 0Yes

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Answers (2)

Profile picture for wetdawgs
Wouldn't it be nice!   Talk with your tax accountant, but I'll bet that the answer is "no".

Capital losses on homes are not deductible.



  • January 19
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Definitely an accounting question. Not sure if you will get many accountants on here. I had an IRA I took money out of, but did not have to pay any taxes on it as I put a payback plan together and started paying immediately after taking it out. Wish I could be more help, but not a licensed CPA.
  • January 19
  • 0Yes

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