IRS view on Re-financing a Rental Property

[Buddy Holmes]

Looking for opinions of the tax risk of re-financing a mortgage on a rental property.

I have read something about the IRS disallowing interest expense of such refinancing.

Cheers,

Buddy 

[Diane E.]

Interest on personal residences has some limits, but those limits don't apply to rental properties.   Even after a refinance, you can deduct all interest currently unless the extra interest expense puts you in a net loss position.  If you have a net loss, you may be subject to passive loss limitations depending on your personal tax situation.