Interest on a home equity loan cannot be deducted for AMT purposes

a. True
b. False
Indicate whether the statement is true or false


False
RATIONALE: Interest on a home equity loan is deductible as qualified residence interest for regular income tax purposes, and is deductible for AMT purposes if the proceeds are used to acquire or substantially improve a qualified residence (i.e., qualified housing interest). Also, interest on a home equity loan is deductible as investment interest expense for AMT purposes if the proceeds from the loan are used for investment purposes. Otherwise, interest on a home equity loan is not deductible for AMT purposes.

Business

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