The federal income tax system provides incentives for individual taxpayers to meet their housing needs by purchasing instead of renting a home.

Question

Quizplus · Accepted Answer

The federal income tax system provides several deductions and credits that incentivize individuals to purchase a home, including the mortgage interest deduction, property tax deduction, and homebuyer tax credits. These incentives do not apply to renters, so there is a financial advantage to owning a home rather than renting.

The Federal Income Tax System Provides Incentives for Individual Taxpayers