Interest Paid on Home Equity Debt Is Not Deductible in Computing

question 82

True/False

Interest paid on home equity debt is not deductible in computing alternative minimum taxable income (AMTI).

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Definitions:

Compounded Monthly

A method of calculating interest where the interest earned is added to the principal each month, and the next month's interest is calculated on this new total.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually stated as an annual rate.

Annual Return

The percentage of gain or loss on an investment over a one-year period, taking into account both capital gains and dividends.

Retirement Fund

Financial resources that have been saved and are used to support a person's retirement.