Cost Basis and cash-out refinancing.

[Justin Fox]

So I built a house this year and it has been occupied since April.  I just closed on a cash-out refinance (same year).   Would the refinance amount be the new cost basis?  Or would I just add the depreciable line items on the closing sheet to the cost to build for cost basis calculation (minus land of course)?

The refinance loan amount is ~20,000 higher than the cost to build.  Is it the lesser of the two?

Thanks!