We are reviewing our 2014 tax
prep for accuracy and an AMT related main question came up that we hope you can help with and some related follow up questions.
We have an investment property
with a mortgage. The proceeds of this mortgage went for renovation of the investment property and the other half went towards purchase of stock which had long term capital
gains realized in 2014.
Since this is an investment property....not a primary residence or second home we believe that it would make sense that the interest
on the portion of the mortgage used to get the stock would be deductible
and not subject to AMT tax adback. We paid a lot in AMT and had this interest added back which hurt us
. Is this correct? Where in the tax code does it say this...I see stuff about adding back for AMT interest expense for mortgage for home equity that is not used for purchase or improvement of primary or second "home"....like if you buy a car with a home equity line of credit
....but an investment property is not a "home".
Follow Up Related Questions: Wouldn't brokerage account margin interest expense be useable and not subject to AMT tax adback?
Also, aren't dividends
and long term capital gains not subject to AMT tax?0
If unfortunately for me my 2014 investment interest expense is added back for AMT, can the interest expense be saved for use in a future year when I am not subject to AMT?