How does a Cash-out Refi affect depreciation?

[Chris T.]

I have searched the forums but have not come across an answer to this situation...

I purchased a rental 1.5 yrs ago as a buy and hold property. I am now looking to do a cash-out refi after doing some improvements. With this refi we will of course be getting a new appraisal. Does the new loan or appraisal have any affect on the original basis I have been using for depreciation? If so does my basis change? Does my depreciation "clock" restart at 27.5 years? Is it some calculation of a basis based on the new appraisal vs the original basis minus the depreciation already claimed?

I know that I should probably contact a CPA come tax time, but just thought I ask the experts here to get a quick overview.