Cash Out Refi Mortgage Deduction

[Steve Graham]

I am currently doing a cash out Refi on my home in order to free up some money I put in on a renovation/inlaw build out this past year.  My understanding is that I can only take 100k worth of the mortgage deduction for this unless I put the money to use on a real estate improvement or purchase.  My question is whether that can work retroactively.  Basically I have pulled out 400k.  Can I use the money I put into my renovation last year (275K) as a way to justify taking an additional mortgage deduction on 275k of the 400k.

Thanks.

Steve