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1.
The mortgage interest credit is available only to certain homebuyers.
True. It is available to low-income homebuyers who are buying their first home.
2.
Which of the following is true regarding home improvement loan interest?
The interest is deductible for capital improvements only. Capital improvements are those that increase your home's value, prolong its life or adapt it to new uses.
3.
Points charged by mortgage lenders are _______.
To compensate the lender for various administrative fees. These fees can easily be as high as several thousand dollars.
4.
Property taxes on your home are tax deductible if _______.
You itemize your deductions. You must itemize your deductions, as opposed to taking the standard deduction.
5.
The home mortgage deduction is unlimited.
False. It is subject to certain limits of deductibility.