peggysioux5 Posted March 16, 2016 Report Share Posted March 16, 2016 Taxpayer refinances home mortgage in early part of 2015 and takes out $175,000. Taxpayer is using $125,000 to gift to children and the remaining $50,000 is put in saving to apply to home improvements but home improvements have not commenced. Can the $50,000 still be considered acquisition debt or is there a time period that the improvements need to be done after the refinancing of the home in order to be considered acquisition debt? Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 17, 2016 Report Share Posted March 17, 2016 48 minutes ago, peggysioux5 said: Taxpayer refinances home mortgage in early part of 2015 and takes out $175,000. Taxpayer is using $125,000 to gift to children and the remaining $50,000 is put in saving to apply to home improvements but home improvements have not commenced. Can the $50,000 still be considered acquisition debt or is there a time period that the improvements need to be done after the refinancing of the home in order to be considered acquisition debt? The more important question is, is she adopting? (raises his hand and waves it wildly...) I do not know if there is a timeframe or not. I would refrain from claiming it until it WAS used for improvements. Lots of things can happen. 2 Quote Link to comment Share on other sites More sharing options...
peggysioux5 Posted March 17, 2016 Author Report Share Posted March 17, 2016 24 minutes ago, Jack from Ohio said: The more important question is, is she adopting? (raises his hand and waves it wildly...) I do not know if there is a timeframe or not. I would refrain from claiming it until it WAS used for improvements. Lots of things can happen. Agreed....that is the more important question!!!! Quote Link to comment Share on other sites More sharing options...
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