I have a property that was completely paid off. I recently refi and pulled cash to purchase additional and wondering how to set up so it properly tracks. I received the cash not a bank who previously held note requiring payoff. Would I process 2 transactions showing money out since the was no one to pay off or just 1 transaction showing money in for the new loan? I have a year and a half of transactions logged when there was no mortgage and want to make sure I don’t screw up the reporting and analysis data provided. Please help! Thank you
Did you ever figure this out? I have a property I just did a cash out refinance on also. I currently marked the cash out as “Owner Distribution” but not sure that’s correct…
No I didn’t and have received guidance so not sure I have documented correctly. Thinking about reviewing with my CPA by showing him software I recently started using, the options and his recommendations as how to log. If you figure it out, please let me know
Definitely talk with a CPA about how to handle this from a tax/accounting perspective. We do not provide tax, legal, accounting, or investment advice.
“Proceeds & Payoffs” may be the best category for refinance activity. Here’s the relevant help article with some detailed options for handling scenarios like this:
Track Purchases, Sales, and Refinances | Stessa Help Center
Yes, thank you. I will definitely review and provide proper docs to CPA but also appreciate the recommendation of the article below.
I have a similar situation and would like some guidance on category and money in vs out when doing a cash out refi. Based on the example below, how to account for the check that gets paid out to me? Thanks
New loan amount $100k - category proceeds and payouts, money in
Closing costs $2k - category closing costs, money out
Pay off old loan $80k - category proceeds and payouts, money out
Cash paid to me - category proceeds and payouts??, money in or money out?