Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

My wife and refinanced our home and we used part of the

My wife and refinanced...

My wife and refinanced our home and we used part of the money to pay off a HERO loan to CIT BANK, we use 19,281.48. Is it possible to deduct a % of that payment as a refund?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

We file together jointly, no dependents, I am a pastor, I also qualify for a parsonage exclusion.

Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
1/2/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,894
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. My name's Lane.

...

So sorry, but, although you can deduct INTEREST, repayment of borrowed fund's isn't deductible.

...

Perhaps it would help to understand the tax policy/logic here.

...

When money is lent, the money isn't taxable income to the borrower AND the lender doesn't get to deduct the loan.

...

The interest, however, (the cost of the loan) IS reportable/taxable interest to the lender ... and a deduction for the borrower.

...

As a matter of fact if the loan ISN'T repaid it becomes income to the borrower that borrowed and didn't repay, and the lender gets to write off the bad debt.

...

When that happens the lender sends a 1099-C (C stands for cancellation of debt) to the borrower and the borrower must report the cancellation of debt "income."

...

So, to recap, your interest is deductible, but so sorry, paying off a loan is not.

Ask Your Own Tax Question

Please let me know if you have ANY questions at all, before rating me

But if this has helped, and you don’t have other questions, I would appreciate a positive rating (using those stars on your screen – and clicking submit)

That’s the only way JustAnswer will compensate me for the work here.

Thanks,

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,894
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,894
14,894 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have a client who is coming to get a loan on a vacation
Hi there; I have a client who is coming to get a loan on a vacation home that she's building. She wanted to refinance her current residence for the funds to build the vacation loan to get a lower inte… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
We are a tax exempt non-profit church. We employ "called
We are a tax exempt non-profit church. We employ "called workers". We just called a new pastor and are advancing him roughly $15,000 of future years pay to be used as a down payment on a home. He will… read more
Lane
Lane
JD, CFP, MBA, CRPS
Doctoral Degree
14,894 satisfied customers
I am a pastor that owns my own home. The church has a
I am a pastor that owns my own home. The church has a parsonage but I am not using it. Can I assign most of my salary as Housing allowance? My house payment is $900/month and utilities are about $200/… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My wife and I filed our taxes as married filing separately
My wife and I filed our taxes as married filing separately last year. The reason for this is that I have a lot of student loan debt and only make about 20,000 a year. Her income is around 100,000 a ye… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I borrowed 31000 from my 401k to fix my house to put it on
I borrowed 31000 from my 401k to fix my house to put it on the market. It sold for 195,000. Now I am wondering what the smartest thing to do is to buy a new house. We are moving from NH to MN. Either … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Short sold our home last year. We have forgiven debt on this
Short sold our home last year. We have forgiven debt on this house and using the insolvency form to lessen our liability. Do we qualify for and is it possible to "elect the Exclusion for sale of your … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
we have a 30 year 450,000.00 mortgage fixed at 5.75 we are
we have a 30 year 450,000.00 mortgage fixed at 5.75 we are about half way thru the the loan period. we desperatly want to lower our monthly payment wich is 4,000.00 including insurance and property ta… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
We refinanced our home and rental on one loan. Paying off the
We refinanced our home and rental on one loan. Paying off the rental loan balance, we assumed we could claim that portion of the new loan approximently 50% of loan as payment of rental, or did we real… read more
Dave CPA
Dave CPA
Master's Degree
69 satisfied customers
Tax Expert Do you know Reduction of Tax Attributes Due to
Tax Expert Do you know Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustmen? We just closed last Nov on a short Sale (Freddie mac) We settled on 1st but a few… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
as a part time Minister of our church, I claim the housing
as a part time Minister of our church, I claim the housing allowance on my income w2 with my church, I am paided $ 15,000 annually or 26 weeks @ $ 576.00. My home expenses total almost $30,000.00, so … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I was married last july and we purchased a home in November.
I was married last july and we purchased a home in November. We only had one house payment affect last year so we have roughly 142 paid in interest that we can write off. I was told that i can use my … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My husband is a commissioned minister who works in a school.
My husband is a commissioned minister who works in a school. They did not without any federal, state, ny or social security tax from his check. Only thing listed is wages. They did not designate housi… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am a pastor that recently retired from my secular job. I
I am a pastor that recently retired from my secular job. I am now using a portion of my salary that I receive from the church to make my house payment. Is it permissible to use that portion as a housi… read more
Marvin,EA
Marvin,EA
Enrolled Agent
Bachelor's Degree
1,605 satisfied customers
Mortgage Debt Relief Act - Tax on Short Sale or Foreclosure
Background: Bought a house in 2006 for $400k. My parents loaned me the entire amount so there was no official mortgage/lender. My sister and I both lived and still live in the house and it is our prim… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
We have refinanced our main home several times. Our broker
We have refinanced our main home several times. Our broker charges us an origination fee on the settlement statement but gives us a broker credit to offset the charge. It makes it a zero cost refinanc… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I heard something about the cost to save your home from foreclosure
I heard something about the cost to save your home from foreclosure could be deductable. My daughter just spent $2,500.00 to prevent foreclosure. Is this a deduction?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
We put vinyl siding on our house. Is this expense deductable
My husband is a pastor and we own our home(are paying a mortgage), but our home can be considered a parsonage.… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
We refinanced our home in January 2005, can we claim any of ...
We refinanced our home in January 2005, can we claim any of this on our itemized deductions?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x