The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/ptheland-writes-in-part-for-amt-purposes-the-26378497.aspx

Subject:  Re: AMT question Date:  2/12/2008  9:05 PM
Author:  irasmilo Number:  98615 of 129670

ptheland writes (in part):

For AMT purposes, the interest on your home acquisition debt (up to $1 million) is deductible. That is any money used to buy, build, or substantially improve your home.

I reply:

This includes a refinance of the loan originally used to acquire the property, at least where no additional cash was taken out, right? --Bob


Correct. Any cash out provided by the refinance becomes equity debt. The remaining principal balance from the original loan retains its character as acquisition debt.

Ira
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us