Cash out refinance - Interest deductibility

[David V.]

Quick question here.  If I do a cash-out refinance and use the extra funds above those used to pay off the original mortgage to purchase a new investment property is interest on the entire new loan deductible?  For example, If I have a property worth $250,000 with an $80,000 mortgage and do a cash-out refinance for $180,000, pay off the $80,000 and use the extra $100,000 to buy a new investment property (down payment) can I deduct the entire interest on the new loan of $180,000.  My understanding is that GENERALLY (I think there are other situations) I am only allowed to deduct interest if the proceeds are used to make improvements on the original property and cannot deduct the entire amount until the improvement are actually made.   I think this may be a timely topic given where rates are.  I would greatly appreciate any feedback and references to the tax code on this.  Also, not sure if any recent changes in the tax code affected this as well.