Cash Withdrawn on the Refinance

[IDAR]

We have an asset at the historical cost and after the refinance we have an increase in the mortgage payable amount so How can we adjust the asset and mortgage payable on the balance sheet?

and the client has withdrawn cash at the refinance is it taxable for him? 

 

[Lee B]

Debit cash, Credit Mortgage payable. The entry for the cash withdrawn depends on the entity type.

[Abby Normal]

You need to do a journal entry for the deposit based on the closing documents to record all of the associated costs.

Depending on the entity and the timing of the withdrawal, you may have issues with debt financed distributions.

https://www.thetaxadviser.com/issues/2007/nov/interestdeductionondebtfinanceddistributions.html