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refinance /cash out tax implications

I'm planning to do a refi for about $120,000 and pull $30 or so in cash back. If I understand the new tax laws -- and I'm no expert-- $100,000 of home equity can be used for anything and a deduction is allowed. My total loan will be $120,000. Does that mean that I'll be$20,000 over the limit and have to prorate my mortgage interest deductions? I"m planning to use the cash back for home improvements. Just curious now. I"m seeing our accountant in a few days, but thought I'd see if anyone had a clue so I can consider my planning. Any thoughts or comments will be appreciated.

Thanks

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Reply to
Sportsfan
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You are borrowing only $30K over the current mortgage? And you're using it for home improvement? You have no issue at all. It's all deductible. Of course, the real benefit is only to the extent that this along with state tax, if any, and properly tax (this is most people's itemized deduction short list) exceed the standard education. I hope you went fixed and got a good rate. JOE

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-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Reply to
joetaxpayer

Thanks for the quick response. It appears I'll have no problem with deducting interest. Sportsfan

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Reply to
Sportsfan

You're most welcome. I am sorry my response was actually pretty short, as I am in the habit of citing a reliable source, to back up my info.

This is that source:

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Knowing an answer off the top of my head doesn't let me off the hook. When you pull up that IRS Pub, page 9 pretty much covers your situation, and back up my original response that you were doubly covered as you described your intentions. JOE

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Reply to
joetaxpayer

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