Are loan payments tax deductible when pulling STR equity out?

[Joe C.]

Hi everyone, long-time listener, first-time caller... I am in awe of all your collective knowledge and hoping to tap into it for something I've been curious about.

I own a STR with no mortgage, held directly not in an LLC and I deduct on Schedule E for Federal tax purposes. Because of depreciation I generate a paper loss every year. I cannot deduct that loss due to my income level.

I would like to pull equity out of this property with no immediate plans on the table to use it, but want it available for possible use for another property. My question is, is the interest, closing costs, etc. a deductible expense for the property on Schedule E?

If not, how does everyone pull equity out of their properties to use for other purposes?

Thanks in advance for all your help!

Joe