Test your knowledge

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1.
Property taxes on your home are tax deductible if _______.
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You itemize your deductions. You must itemize your deductions, as opposed to taking the standard deduction.
2.
The home mortgage deduction is unlimited.
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False. It is subject to certain limits of deductibility.
3.
Which of the following are not qualifying capital improvements for your home?
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Repairs to your roof, plastering, and fixing broken windows. These improvements do not add anything new to the home.
4.
The mortgage interest credit is available to first-time homebuyers with _______.
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Low incomes. This is a tax credit meant to help those at low income levels.
5.
Points charged by mortgage lenders are _______.
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To compensate the lender for various administrative fees. These fees can easily be as high as several thousand dollars.