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An economic benefit of owning a residence is not being taxed on the homes imputed rental value. Why is this statement of significance, when we
An economic benefit of owning a residence is not being taxed on the homes imputed rental value. Why is this statement of significance, when we also are not taxed on the imputed rental value of cars or other personal assets?
- A. When computing federal income tax, someone who rents a house or apartment from a landlord is allowed to claim a deduction for an amount equal to the renters share of mortgage loan interest and property taxes the landlord pays.
- B. Someone who owns a house and lives in it might benefit from claiming federal income tax deductions for mortgage loan interest and property tax paid, but does not have to recognize the homes estimated rental value as gross income.
- C. Discount points paid on a home mortgage loan are deductible from adjusted gross income in the year when they are paid, as long as the total outlay is at least $500 more than the imputed rental value of the residence.
- D. Local property tax is not an allowed deduction on the income tax return a landlord files with the U.S. federal government, but it is deductible for an owner-occupant who files a joint return with a spouse and claims the standard deduction.
- E. Someone who owns a house and lives in it is eligible to claim federal income tax deductions for mortgage loan interest and property tax paid, as long as the homes estimated rental value is recognized as part of the owners gross income.
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