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We are usually subject to AMT. Will the AMT tax treatment of this refinance differ from the tax treatment of our previous loans?

Yes, and no.

The AMT treatment hasn't changed in a few years. Any interest attributable to the cash out portion is not deductible for AMT purposes. So nothing is changed in the tax treatment, except that you are finally subject to it.

Fortunately, the first dollars of principal you repay is that cash-out portion. So the issue won't last for long. And assuming that the interest on $2k of cash-out is pretty much immaterial, it won't really make a difference on your tax return.

I believe there are worksheets in the instructions for schedule A to help figure out how much of the interest is not deductible for AMT purposes. It's just a proration of your total interest paid, using the average balance of the loan. Once your loan balance gets back down to the principal amount you are refinancing today, the issue will go away.

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