So if you do take the cash from the refinance and do a capital improvement is the loan amount then eligible to be deducted? If part of the cash is used for the house and part not is it a matter of percentage of the money used towards the house?
"The cash you take out of your equity during a refinance isn’t considered income by the IRS. However, there are limitations on deductions that you can take when you refinance your loan. You may only discount interest you pay on your new loan if you use your cash to make a capital improvement on your property. "
