2 Tax Consequences to Consider if
You're Refinancing a Home
may be a great time to refinance, because mortgage rates are
still low but expected to increase.
Before deciding to refinance, however, here are a couple of
tax consequences to consider:
Cash-out refinancing. If
you borrow more than you need to cover your outstanding
mortgage balance, the tax treatment of the cash-out portion
depends on how you use the excess cash. If you use it for home
improvements, it's considered acquisition indebtedness, and
the interest is deductible subject to a $1 million debt limit.
If you use it for another
purpose, such as buying a car or paying college tuition,
it's considered home equity debt, and deductible interest is
subject to a $100,000 debt limit.
"Points" paid when refinancing generally are amortized and
deducted ratably over the life of the loan, rather than being
immediately deductible. If you're already amortizing points
from a previous refinancing and you refinance with a new
lender, you can deduct the unamortized balance in the year you
But if you refinance with the
same lender, you must add the unamortized points from the
old loan to any points you pay on the new loan and then deduct
the total over the life of the new loan.
Is your head spinning? Don't worry; we can help you understand
exactly what the tax consequences of refinancing will be for
you. Contact us today at 925-634-2344!
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,