Did HELOC in 06 to buy boat & college. Re-fied in 09 paying off HELOC. Re-fied in 17 for lower rate. Do we calculate AMT for all years, or just 06, or 06, 09, and 17?

[RickRJT]

We've been doing the AMT worksheet since 2010 (based on income) and have been allocating mortgage interest deduction of 43% deductible (house) and 57% (boat and college tuition) not deductible for AMT purposes all these years, and therefore have been paying AMT every year.   Now we're wondering if we just should've done the AMT just for the year we did the HELOC (2006) and no other year, or still every year until the mortgage is paid off, or just for each year that we did the HELOC and the two re-fi's in 09 and 17?

[TaxGuyBill · Accepted solution]

It should be used for all years.  The AMT adjustment applies to every year that you paid any mortgage interest that was not used to buy, build, or improve your home.