# How to categorize money made on a renovation loan **URL:** \ **Category:** Expense Categories\ **Created:** [April 16, 2020, 1:44am UTC](https://community.stessa.com/t/how-to-categorize-money-made-on-a-renovation-loan/891 "2020-04-16T01:44:46Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![schwarzhomes.llc](https://avatars.discourse-cdn.com/v4/letter/s/48db29/32.png) [@schwarzhomes.llc](https://community.stessa.com/u/schwarzhomes.llc)\ **Post date:** [April 16, 2020, 1:44am UTC](https://community.stessa.com/t/how-to-categorize-money-made-on-a-renovation-loan/891/1 "2020-04-16T01:44:46Z")
We closed on a home with a “renovation” loan where you borrow against the value of what the home WILL be. Example, the home is purchased for $50k but the value after renovations will be $100k. Our loan is for $70k so we walk away from closing with $20k. My question is how do we categorize the $20k of income? Would it be a capital expense refund or owner contribution or something else? ---
**Author:** ![splashmakers](https://avatars.discourse-cdn.com/v4/letter/s/f4b2a3/32.png) [@splashmakers](https://community.stessa.com/u/splashmakers)\ **Post date:** [March 20, 2023, 7:19pm UTC](https://community.stessa.com/t/how-to-categorize-money-made-on-a-renovation-loan/891/2 "2023-03-20T19:19:29Z")
I’m curious how you ended up handling this question? I am new to Stessa and I have the same question. ---
**Author:** ![jeff4](https://yyz2.discourse-cdn.com/flex032/user_avatar/community.stessa.com/jeff4/32/300_2.png) [@jeff4](https://community.stessa.com/u/jeff4)\ **Post date:** [June 28, 2023, 10:07pm UTC](https://community.stessa.com/t/how-to-categorize-money-made-on-a-renovation-loan/891/3 "2023-06-28T22:07:43Z")
> [@schwarzhomes.llc](#): > > 50 This would just be a non-taxable overage of loan proceeds, right? You’d still owe that $70k, but $20k of it would still be in-hand? It doesn’t sound like there’s a profit situation occuring.