Calculating capital gain on property on refinanced price.

[shaddy]

If I refinanced my rental property 2 years ago and the proceeds were not used against improving it. When calculating the Capital gain can I consider the refinanced price as cost of property?

e.g. The original price of the property was 320k and refinanced it after 15 years of owning it to 600k and sold it for 900k, can I use 600k as my cost and pay Capital gain on 300k?

[warrencheswick]

So you got proceeds after 15 years from refinancing, didn't put it into the property and feel that money should be tax free?

Obviously you cannot just claim the capital gains on the appreciation since refinancing. You must claim it on the gain from the $320k initially paid.

[shaddy]

No I don't feel such and you should not be commenting on my feeling here and answering the question only. If I was an expert in Taxes then I will not be asking question here. I though this forum was for helping the clients of Turbotax not commenting on their feelings.