Buying Investment property via a cash out refinance / Taxes

[Marco Trimborn]

Hi,

I am considering to buy one or more investment properties via a cash-out-refinance against another investment property which we already own in our own name.

For which property can/do I deduct the paid interest once I file my taxes? I would guess this needs to be deducted off the income of the newly acquired properties, even though the "paperwork" states that the interest is against the initial property that the cash-out-refi was against. How would this be declared/explained to the IRS...or is this in any shape or form prohibited?

Thanks for help

Marco