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1.
The home mortgage deduction is unlimited.
False. It is subject to certain limits of deductibility.
2.
Property taxes are also called _______.
Real estate taxes. Property taxes are fully deductible from your income.
3.
Which of the following is most true about home office deductions?
If you use a portion of your home exclusively for business, you may be able to deduct home costs such as repairs, depreciation, and insurance, related to that portion. Costs must be related only to the portion of the home used exclusively for business.
4.
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.
5.
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.