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Since you still own, and did not sell or dispose of, the first primary home that you got the cash out refinance, then yes, you may be able to deduct the mortgage interest.
You can deduct mortgage interest on a second home as an itemized deduction if it meets all the requirements for deducting mortgage interest.
Mortgage interest can only be claimed on a maximum of two homes (main home and a second home).
[Edited 04-13-23|6:19 AM PST]
If I understand the question correctly, you refinanced a property that is not your primary residence, and used the funds to purchase what is now your primary residence. If so, you cannot deduct the interest on your tax return, as the mortgage loan is not secured by your primary residence.
Hi David, thank you for such a quick response. Actually the house that I got cash-out refinance from was my primary resident last year. Then I took out some money from that refinance to buy a new primary resident for me to stay now. So the old house now is my 2nd home. Because of that cashout refinance, I have no mortgage interest from my new house, while my old house has big mortgage interest. So in this situation, can I deduct this cashout mortgage interest in my Schedule A?
Since you still own, and did not sell or dispose of, the first primary home that you got the cash out refinance, then yes, you may be able to deduct the mortgage interest.
You can deduct mortgage interest on a second home as an itemized deduction if it meets all the requirements for deducting mortgage interest.
Mortgage interest can only be claimed on a maximum of two homes (main home and a second home).
[Edited 04-13-23|6:19 AM PST]
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