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Basics Intermediate: What Tax Relief Can You Get for Your Home?

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1.
Taxes held in an escrow account for property tax are only deductible if the money is actually used to pay your property taxes.
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True. You cannot deduct taxes held in escrow until the taxes are paid.
2.
The home mortgage deduction is unlimited.
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False. It is subject to certain limits of deductibility.
3.
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.
4.
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.
5.
A mortgage credit certificate is for people who are _______.
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Both low-income and buying their first home. The mortgage credit certificate is intended to help low-income people buy their first home.