Expert Answer :A property owner refinances his apartment building

Solved by a verified expert :A property owner refinances his apartment building. He borrows enough to pay off the existing loan, pay all of the closing costs associated with the new financing, and receive $30,000 cash. Which statement applies to his tax obligation regarding the cash received from financing?
A)
The cash is taxed as active income but may be amortized over the loan term.
B)
There is no tax on refinancing until the property is sold.
C)
The cash is taxed as active income in the year received.
D)
The cash is taxed as passive income in the year received.