Alternative Minimum Tax, and Real Estate Investing

Based on what I’ve read [numerous places], real & personal property taxes, along with [state] income & sales taxes, are not deductible when calculating the alternative minimum tax.


Has this affected any higher income earners out there [aka people who are suspectible to the AMT], who invest in real estate?

I couldn’t imagine not be being able to deduct property taxes on real estate investments!!! Damn.

Ok, I looked again, and the guy in that article said: “While there is no actual limit on the number of properties or amount of taxes, you may not get any tax benefit if the dreaded alternative minimum tax, or AMT, kicks in. All taxes (real and personal property taxes and income or sales taxes) on Schedule A are not deductible for AMT. Rental property taxes on Schedule E do not affect your AMT.”

→ So he’s actually saying → your own PERSONAL house deductions are done on the Schedule A, while your BUSINESS real estate / rental investments [SFH’s, whatever] appear on Schedule E, and therefore only your own PERSONAL house would be affected by the AMT. And if you have more than one PERSONAL house, aka a non-rental vacation house in Florida and a main house in Texas, they both would appear on your Schedule A.

Does that sound correct to you tax pros out there???


yes, you are correct on your 2nd post.