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gdefelice: "Okay...I'm still not clear here guys."

Not a pro, but I will try.

"It sounds like you guys are saying the following:

(1) Interest on mortgage debt incurred upon the purchase of the home is deductible no matter what your income? AMT does not affect this fact."


Up to the maximum debt amount. $1M, IIRC. All interest on even purchase money mortgage is not deductible if the loan is too big.

"(2) Interest on a home equity loan / line of credit (as distinct from the original loan obtained to buy the home) may or may not be deductible depending on whether AMT applies in a given year?"

Yes, because banks' definitions do not necessarily align with IRS definitions.

Regards, JAFO
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