When you own a house as a primary residence,
A) it is always best to itemize deductions on your tax return.
B) your property taxes are not deductible.
C) you get a straight $5,000 deduction.
D) interest and taxes may increase your allowable deductions to the point where it is beneficial to itemize them.

Question

Quizplus · Accepted Answer

Owning a house as a primary residence often means you can deduct mortgage interest and property taxes on your tax return. These deductions can add up to more than the standard deduction, making it beneficial to itemize deductions. Choices A, B, and C are incorrect because itemizing is not always best, property taxes are deductible, and there is no flat $5,000 deduction for homeowners.

When You Own a House as a Primary Residence