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What Is the Income Tax Advantage of Home Equity Loans

Question 68

Multiple Choice

What is the income tax advantage of home equity loans?


A) Interest on home equity loans (loan amount up to $100,000) is tax-deductible.
B) Payments on home equity loans (loan amount up to $100,000) are tax-deductible.
C) Interest on home equity loans is tax-deductible only if it is used to improve the home, and the total debt on the home cannot exceed $750,000.
D) Payments on home equity loans is tax-deductible only if it is used to improve the home, and the total debt on the home cannot exceed $750,000.

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