threshold to buy instead of rent winter place

[someguy]

I think "banking" on the idea of appreciation is, as we all should have learned in 2007, a bit shaky. Also, when I was working, I was making enough money that I was going to lose a lot of my normal real estate associated write-offs to the AMT. Especially since I live in NY STATE and get heavily whacked already. Keep an eye on the AMT and what it may due to your projected deductions if you are anywhere close to the AMT threshold.

Well I have to go back on what I said -- you may have been spot on regarding the AMT. We use a CPA for tax prep and I'm embarrassed to admit it'd been a few years or so since I looked closely at our 6251. We've crept up quite close to the threshold and may or may not have options to keep everything fully deductible.

I've got time scheduled out with a couple experts regarding those options but in the meantime am I correct that (assuming a traditional scenario) AMT might offset the RE tax deduction of another place but should not offset (negate) the interest deduction of another place?

 

[HadEnuff]

Well I have to go back on what I said -- you may have been spot on regarding the AMT. We use a CPA for tax prep and I'm embarrassed to admit it'd been a few years or so since I looked closely at our 6251. We've crept up quite close to the threshold and may or may not have options to keep everything fully deductible.

I've got time scheduled out with a couple experts regarding those options but in the meantime am I correct that (assuming a traditional scenario) AMT might offset the RE tax deduction of another place but should not offset (negate) the interest deduction of another place?

I'm not an accountant, but I think BOTH the RE Tax deduction AND the mortgage interest deduction could be negated by the AMT, depending upon your income and the size of those deductions along with any other deductions you may have.

 

[someguy]

I'm not an accountant, but I think BOTH the RE Tax deduction AND the mortgage interest deduction could be negated by the AMT, depending upon your income and the size of those deductions along with any other deductions you may have.

The AMT form (6251) adds line 9 from schedule A back in. Line 9 on schedule A is state income taxes (scha/5) plus real estate taxes (scha/6). Mortgage interest is reported on line 10 which is not included in the above.

But like you, I'm not an accountant and have a strong dislike for these forms