Are there any tax implications to pulling out equity?

[Joseph M.]

Are there any tax implications if you get a line of credit or refinance to pull cash out of a property to invest in another? From my understanding, pulling out cash through a refinance would have tax implications. Can you still write off the cost of that money in the line of credit scenario?

[Kyle J.]

If by "tax implications" you're worried about having to pay taxes on the cash you pull out, don't worry.  You won't.  It's not income.  It's a loan that has to be paid back. 

As for writing off the cost (interest) of that money if you pull money out of House A to purchase House B, yes - that is an allowable deduction.  However, it would actually be expensed under House B (as opposed to House A even though you initially took it out of House A).