Is mortgage interest deductible under alternative minimum tax

[LeeM · Accepted solution]

Yes, but only for your primary loan NOT for home equity debt interest.

The Alternative Minimum Tax eliminates most deductions and replaces them with special tax rates and a special large AMT exemption. It leaves your deduction for your mortgage interest, but eliminates the deduction for home equity debt interest. 

The "Pease Limitation" gradually reduces the value of most itemized deductions for high income taxpayers that aren't subject to the AMT. It reduces the value of all of your mortgage interest deductions -- home purchase and home equity debt. These limitations typically only apply to families with significant incomes. If you aren't making over $100,000 per year, it's relatively unlikely that the AMT will affect you.The Pease Limitation only comes into play with incomes that are over $250,000.