Walter, who is single, owns a personal residence in the city. He also owns a cabin near a ski resort in the mountains. He uses the cabin as a vacation home. In August, Walter borrowed $60,000 on a home equity loan and used the proceeds to reduce credit card obligations and other debt. This year, he paid the following amounts of interest.
|
On his personal residence |
$16,000 |
|
On the cabin |
7,000 |
|
On the home equity loan |
2,500 |
|
On credit card obligations |
1,500 |
|
On purchase of personal use SUV |
1,350 |
What amount, if any, must Walter recognize as an AMT adjustment?