Ted,who is single,owns a personal residence in the city.He also owns a condo near the ocean.He uses the condo as a vacation home.In March 2015,he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile.During 2015,he paid the following amounts of interest. ∙ on his personal residence $15,500 ∙ on the condo 6,200 ∙ on the home equity loan 4,800 ∙ on credit card obligations 1,700 What amount,if any,must Ted recognize as an AMT adjustment in 2015?
A)$0
B)$4,800
C)$6,200
D)$11,000
E)None of the above

Question

Ted,who is single,owns a personal residence in the city.He also owns a condo near the ocean.He uses the condo as a vacation home.In March 2015,he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile.During 2015,he paid the following amounts of interest. ​ ∙ on his personal residence $15,500 ∙ on the condo 6,200 ∙ on the home equity loan 4,800 ∙ on credit card obligations 1,700 What amount,if any,must Ted recognize as an AMT adjustment in 2015?
A)$0
B)$4,800
C)$6,200
D)$11,000
E)None of the above

Quizplus · Accepted Answer

The interest on the home equity loan used to acquire a luxury automobile is not deductible for AMT purposes, so $4,800 must be recognized as an AMT adjustment.

Ted,who Is Single,owns a Personal Residence in the City