If you refinanced a rental and used some of the proceeds personally, the annual mortgage interest statement may not tell the whole tax story.

Useful records include:

• The original and refinance closing statements.

• The old loan balance and its use history.

• Bank records showing where the refinance proceeds went.

• Invoices or receipts for the expenditures.

• A principal-payment history for the refinanced loan.

• Details of later advances or another refinance.
  

That history helps determine the current allocation and whether earlier returns need attention.

Planning a future refinance? Let us know before spending the proceeds so we can discuss the tax implications and recordkeeping.