When Considering a Principal Residence as a Tax Shelter,remember That

question 20

Multiple Choice

When considering a principal residence as a tax shelter,remember that you can

• A)purchase a house and deduct the mortgage interest.
• B)maintain and improve your home,as $500,000 of capital gains for couples and $250,000 of capital gains for single filers is exempt from taxation.
• C)take out a home equity loan to pay for other debts,such as auto financing.
• D)use all of these tax-saving strategies.
• E)only A and C.

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Definitions:

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