Cash out refi of primary or loan on rental property

[mshell]

Im buying a vacation rental and wondering which affords the better mortgage interest tax deduction. Getting a cash out refinance of my primary for the purchase or getting a regular purchase mortgage on the rental property? The interest rates are higher on the rental property loan.

Thanks

[Bsch4477]

You can’t deduct the interest from the refinance unless the loan is used to buy, build, or substantially improve the property that secures the loan. 

[mshell]

Thank you 

[mshell]

The mortgage payment for the vacation rental is about $200 more per month than it would be if I do a cash out on my primary residence. 

Does the mortgage interest expense deduction associated  with putting a loan on the investment property justify the higher monthly payment? Im in the 32% tax bracket. 
Thank you 

[Bsch4477]

Your question addresses only one aspect of your financial situation. At your income level you would be well advised to consult a certified financial advisor to consider your entire financial situation and goals. 

[AmeliesUncle]

Refinance or take out a second loan?  

Do you Itemize?

As was mentioned, at your income level, it is in your best interest to go to a good tax professional and/or financial advisor that can look at your ENTIRE situation, rather than asking random people on the internet with limited knowledge about your specific circumstances.