1) Generally, the tax law provides more incentives for renters than homeowners. True or False 2)…

1) Generally, the tax law provides more incentives for renters
than homeowners.
True or False
2) A personal residence is a capital asset.
True or False
3) A taxpayer can only exclude gain on the sale of their
current personal residence (the residence the taxpayer is
living in at the time of the sale).
True or False
4) As a general rule, at most, a taxpayer is allowed to
exclude gain on the sale of a principal residence once every two
years.
True or False
5) The maximum deductible amount of qualified residence interest
is indexed for inflation (it increases each year).
True or False
6) Interest paid on a home equity loan used to purchase a car is
not deductible.
True or False
7) Taxpayers with a qualifying home office can compute their
home office expense using the actual expense method or the
simplified method. Taxpayers can choose to use one method for one
year and the other method for the next.
True or False