If I buy a investment property and then refinance it. will my capital gains be based on the original price or?

the refinanced amount owed to the bank. Which may be $20 to $30K higher than the original price due to so much equity in the property.

Answer:
It will be based on the original purchase price, plus the cost of any improvements you've made. Save those receipts!
capital gains only when you make a profit when you sell, if you do.
Original price plus the cost of improvements.
Capital gains do NOT occur till you sell the property in question. You simply will owe the lender whatever the $amount the property is secured for, plus any accrued interest, charges or fees.
When you sell, capital gains are based on the difference between the sale price and the tax basis for your property. If it is an investment property, this will usually NOT be the original price that you paid. It will be the price you paid minus any depreciated value. You should be deducting depreciation from your income every year.

The answers post by the user, for information only, BAnswer.com does not guarantee the right.

Other Questions and Answers:
  • How can I figure out the real cost of a 401K loan?
  • What are the top 5 stocks to but into, and why?
  • If you had just $100 to play with where would you invest?
  • Question about my daughters college fund?
  • How can I invest $25 a month?
  • How do I get a company to take a look at a board game I've invented.?
  • which indicators to build agood swing trading system.?
  • Is there any Venture Capitalists online?