http://www.amtblog.com/its-fall-10-weeks-of-alternative-minimum-tax-planning-ideas-week-4 Alternative Minimum Tax Tue, 02 Mar 2010 21:39:56 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.amtblog.com/its-fall-10-weeks-of-alternative-minimum-tax-planning-ideas-week-4/comment-page-1#comment-18 Susan Tue, 01 Dec 2009 02:01:58 +0000 http://www.amtblog.com/?p=107#comment-18 There is an adjustment for a portion of the mortgage interest that is not used for purchase of a home or improvements on the house. This is a add back to AMT. There is an adjustment for a portion of the mortgage interest that is not used for purchase of a home or improvements on the house. This is a add back to AMT.

]]> http://www.amtblog.com/its-fall-10-weeks-of-alternative-minimum-tax-planning-ideas-week-4/comment-page-1#comment-16 Joy Whaley Mon, 23 Nov 2009 03:44:45 +0000 http://www.amtblog.com/?p=107#comment-16 The above example does not include mortgage interest, which is treated differently for AMT than for regular tax purposes. Taxpayers who itemized can deduct qualified residence interest on up to two residences. The deduction is limited to interest on acquisition indebtedness up to $1 million and home equity debt up to $100,000. Comparatively, the AMT mortgage interest deduction is limited to qualified housing interest, which includes only the interest incurred to acquire, construct, or substantially improve the taxpayer’s personal residence and one other dwelling used for personal purposes. Home equity loan interest is only deductible if it meets the definition of qualified housing interest. For AMT, a positive adjustment is required in the amount of the difference between qualified residence interest allowed as an itemized deduction for regular income tax purposes and qualified housing interest allowed in the determination of AMTI. The above example does not include mortgage interest, which is treated differently for AMT than for regular tax purposes. Taxpayers who itemized can deduct qualified residence interest on up to two residences. The deduction is limited to interest on acquisition indebtedness up to $1 million and home equity debt up to $100,000. Comparatively, the AMT mortgage interest deduction is limited to qualified housing interest, which includes only the interest incurred to acquire, construct, or substantially improve the taxpayer’s personal residence and one other dwelling used for personal purposes. Home equity loan interest is only deductible if it meets the definition of qualified housing interest. For AMT, a positive adjustment is required in the amount of the difference between qualified residence interest allowed as an itemized deduction for regular income tax purposes and qualified housing interest allowed in the determination of AMTI.

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