I’m talking about tax I have to pay when I sell the property, not property tax.
I’m just afraid that if we refi at $260K our cost basis will turn into $260K. But I think it’s right that it depends on your purchase price ($400K) but not the refi price ($340K).
I’m talking about tax I have to pay when I sell the property, not property tax.
I’m just afraid that if we refi at $260K our cost basis will turn into $260K. But I think it’s right that it depends on your purchase price ($400K) but not the refi price ($340K).
thanks.
lepetitangel[/quote]
You paid 400k for the condo. That’s your cost basis. You could have paid cash and financed zero… It’s still a 400k purchase. Refi w/no cash out does not effect the cost basis – just how you are paying for it.
I’m talking about tax I have to pay when I sell the property, not property tax.
I’m just afraid that if we refi at $260K our cost basis will turn into $260K. But I think it’s right that it depends on your purchase price ($400K) but not the refi price ($340K).
thanks.
lepetitangel[/quote]
You paid 400k for the condo. That’s your cost basis. You could have paid cash and financed zero… It’s still a 400k purchase. Refi w/no cash out does not effect the cost basis – just how you are paying for it.
I’m talking about tax I have to pay when I sell the property, not property tax.
I’m just afraid that if we refi at $260K our cost basis will turn into $260K. But I think it’s right that it depends on your purchase price ($400K) but not the refi price ($340K).
thanks.
lepetitangel[/quote]
You paid 400k for the condo. That’s your cost basis. You could have paid cash and financed zero… It’s still a 400k purchase. Refi w/no cash out does not effect the cost basis – just how you are paying for it.
I’m talking about tax I have to pay when I sell the property, not property tax.
I’m just afraid that if we refi at $260K our cost basis will turn into $260K. But I think it’s right that it depends on your purchase price ($400K) but not the refi price ($340K).
thanks.
lepetitangel[/quote]
You paid 400k for the condo. That’s your cost basis. You could have paid cash and financed zero… It’s still a 400k purchase. Refi w/no cash out does not effect the cost basis – just how you are paying for it.
I’m talking about tax I have to pay when I sell the property, not property tax.
I’m just afraid that if we refi at $260K our cost basis will turn into $260K. But I think it’s right that it depends on your purchase price ($400K) but not the refi price ($340K).
thanks.
lepetitangel[/quote]
You paid 400k for the condo. That’s your cost basis. You could have paid cash and financed zero… It’s still a 400k purchase. Refi w/no cash out does not effect the cost basis – just how you are paying for it.
.
