Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Taxes held in an escrow account for property tax are only deductible if the money is actually used to pay your property taxes.
True. You cannot deduct taxes held in escrow until the taxes are paid.
2.
A mortgage credit certificate is for people who are _______.
Both low-income and buying their first home. The mortgage credit certificate is intended to help low-income people buy their first home.
3.
Which of the following are not qualifying capital improvements for your home?
Repairs to your roof, plastering, and fixing broken windows. These improvements do not add anything new to the home.
4.
The home mortgage deduction is unlimited.
False. It is subject to certain limits of deductibility.
5.
Which of the following is most true about home office deductions?
If you use a portion of your home exclusively for business, you may be able to deduct home costs such as repairs, depreciation, and insurance, related to that portion. Costs must be related only to the portion of the home used exclusively for business.