Selling one rental/investment property and refinancing another

[Max Wallach]

Quick question about the tax implications for selling a rental property and refinancing another.  I am in the process of selling one property where I am going to have income subject to taxes.  At the same time I am in the process of refinancing another property, which involves paying a decent amount towards the home in closing costs, ie paying the mortgage down enough to qualify for an investment property loan.

Are the costs associated from the refinance deductible off the profit from the sale?  They are both investment properties.

Thanks,
Max