AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
HELOC and AMT
Posted by: sonofagunk, August 17, 2017 01:33PM
All of this assumes that I am paying AMT

I understand that HELOC interest is only deductable when the money is used for home improvements, just wondering about timing.

If I had $100K in the bank and used it to make improvements, then got a HELOC and put that money back in the bank, would the interest still be deductable?


What about if I got a HELOC, took the money out, and then months (or even the next year) then did the improvements. Would I be deduct the interest? If I were 100% honest, would I only be able to deduct the interest starting when I paid for the renovations?

I know it is all the honor system, and hopefully the AMT goes away (and in my case, mortgage/heloc interest does NOT), just wondering what the actually requirements are

thanks

Re: HELOC and AMT
Posted by: Art, August 17, 2017 02:42PM
You would want to be able to trace those mortgage loan proceeds to be used to buy, build or improve your home.

I don't believe your suggestions meet that requirement, but I also tend to be conservative.

Re: HELOC and AMT
Posted by: sonofagunk, August 17, 2017 03:30PM
Guess the question is timing. Do I have to have the HELOC money BEFORE I do the renovations. And I tend to be conservative too, that is why I am asking.

Re: HELOC and AMT
Posted by: triad, September 19, 2017 09:00PM
Everything I've seen says yes, the HELOC has to have been in place before the renovations were made in order for the money to count as buy build or improve.



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