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 2014 - Mount Dora00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.