A refi has absolutely no effect on existing depreciation that was in process already prior to the refi. Nothing changes there. But if you "cashed out" on the refi and used any of the cash out to get property improvements done on that rental, then the property improvement is added to the already existing list of assets in the Assets/Depreciation section.
Take note that interest on that portion of cash-out money that was not used for the rental, can not be claimed as a deduction on the SCH E. If you did in fact cash out and still had cash left over after paying the the remodel, then let me know if you need more details on this so you don't inadvertently claim interest on the refi that you may not be entitled to legally.
Basically, I would need the following:
Amount of the new loan that was used to pay off the old loan (Interest is deductible on SCH E)
Amount of the new loan used to pay for property improvements on the rental (Interest deductible on SCH E)
Amount of the new loan that was "NOT" used to pay anything on the rental (Interest is "NOT" deductible)
