AMT Mortgage Interest Adjustment

[Unregistered]

Is total acquisition debt on the main and second home combined limited to one million dollars when computing the AMT mortgage interest adjustment? Would the following formula provide the correct AMT mortgage interest deduction for the amounts indicated?

Home acquisition debt: 1266200
Current average loan balances: 1276326
Home mortgage interest paid 2005: 49448
Maximum acquisition debt allowed: 1000000
Percent of total Interest allowed: .7835
1000000 divided by 1276326
AMT mortgage interest deduction 38742
.7835 x 49448 = 38742

Any comments would be appreciated.

Jeff

[Unregistered]

Doesn't appear to be any AMT adjustment. Your calculation allowing 38,742 is the regular tax interest deduction. Since all of the interest(38,742) is attributable to acquistion debt, why would there be any AMT adjustment?

[Unregistered]

Based on the worksheet on page 9 of publication 936 the mortgage interest deduction for regular tax purposes is 42624. The increase is caused by the extra 100000 of home equity debt that can be utilized when total acquisition debt exceeds 1000000.

Jeff