Which of the following statements regarding the benefits of home ownership is most correct?

• A. A less expensive house in a neighborhood of generally more expensive houses can be expected to increase by more in value, over time, than the areas average percentage rate of home value appreciation.
• B. Owner-occupied residences tend to be more liquid, and to have lower percentage transaction costs when sold, than we see with stocks and bonds in a typical households investment portfolio.
• C. A home owner can reduce federal income taxes by deducting home owner insurance premiums, and the costs of maintaining the home, from adjusted gross income in computing taxable income.
• D. If a primary residence is sold for more money than was paid for the house and major improvements, the owner generally is exempt from paying federal income tax on part or all of the capital gain.
• E. Both answers b and c above are true.