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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.
Choose wisely. There is only one correct answer.
True. You cannot deduct taxes held in escrow until the taxes are paid.
2.
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.
3.
Which part of a home mortgage is tax-deductible for those who qualify for the deduction?
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Interest. Only the interest is deductible.
4.
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.
5.
The mortgage interest credit is available only to certain homebuyers.
Choose wisely. There is only one correct answer.
True. It is available to low-income homebuyers who are buying their first home.