Rental cash out refi. Is there any tax if the new loan exceeds the adjusted basis?

[IMATAXMAN]

Cash out rental refi- Is there gain if the new loan exceeds the adjusted basis of the property?

Also, is the interest deductible only to the adjusted basis and the remaining consumer or investment?

[TaxMonkey · Accepted solution]

Assuming this is an individual with a rental property.  The loan is not taxable and the interest is not deductible.unless used to buy, build or improve the property.