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

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1.
What is the maximum you can deduct for all your interest payments on mortgage debt secured by a first or second home?
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$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.
2.
The mortgage interest credit is available to first-time homebuyers with _______.
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Low incomes. This is a tax credit meant to help those at low income levels.
3.
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.
4.
The interest you pay on a home equity loan or line of credit is deductible dollar for dollar.
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False. Beginning in 2018, interest is only tax deductible if you use the loan to buy, build, or improve the home that secures the loan, as opposed to using it for non-home-related purposes.
5.
A new energy-efficient roof on your home might be tax deductible for you.
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True. Certain improvements for energy efficiency can get you a tax credit, though it is limited.