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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.
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 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.
4.
What is the maximum you can deduct for all your interest payments on mortgage debt secured by a first or second home?
$750,000 for joint returns. Note that you may not use the $750,000 deduction if you pay cash for your home and later use it as collateral for an equity loan.
5.
A new energy-efficient roof on your home might be tax deductible for you.
True. Certain improvements for energy efficiency can get you a tax credit, though it is limited.