My understanding is that the interest can be deducted on taxes, if the cash out proceeds are used for improvements that increase the subject property value, however, if that is not the case, then the deduction can only be claimed on the original balance of the original mortgage used to acquire the property that is being refinanced.

I may be selling small owner user building we've occupied and looking at where to put the proceeds. 

With that information I can then proceed to narrow down the areas that would make sense to look at.

How would you proceed?

although this property may ultimately be 1031'd, the split in equity in the house between my wife and her parents makes the sale quite messy. we feel like we need to divvy up the proceeds in a manner where we would have to assume the tax bill since legislation can always change and the 1031 benefits and step up in basis at death isnt always guaranteed.Thanks!

@Daniel TisdaleBuy it from them at market value (or some agreeable amount) with standard financing and they get the home sale proceeds to use for their living expenses.

It would kill us if we worked all these years, finally cashed out only to put the proceeds into something that locked our funds up and then handed us back 50% of it.

Save your kids/wife the pain of probate court. 

Would that be enough to say in court that they can't withhold for those issues.

I know tools such as the BP calculators are available for use, but I want to learn what goes on behind the scenes to fully understand the numbers (math) and specifically what it means so i can better gain an understanding & make better investment decisions when the time comes.Any advice/ tips or tricks on analyzing deals & double checking the numbers (before proceeding with the deal?