Cash-out refinance on apartment building tax question

[Bruce Raphael]

I live in NJ & bought an apartment building 12 years ago for $1M and put down $250K. I now owe $450K on the loan.If I refinance the property now valued at $1.7M and we can pull out $750K in equity with the refi, what are the tax implications? Is there a strategy that anyone can reccomend

[Alina Trigub]

@Bruce Raphael From what i have known you don't pay taxes on a loan.  Perhaps @Lance Lvovsky can elaborate a bit on the interest tracing rules as it sounds like something that may potentially be applicable.