Homeowners Receive Preferential Tax Treatment Under Current Federal Income Tax

Homeowners receive preferential tax treatment under current federal income tax laws. The benefits that homeowners receive from this treatment include all of the following EXCEPT:

A) Appreciation in the value of the home that has occurred since the time of purchase is excluded from federal taxable income
B) Homeowners can deduct their mortgage interest expenses on both first (primary) and second homes from federal taxable income
C) Homeowners can deduct local property taxes from federal taxable income
D) Losses on the sale of a personal residence can be deducted from federal taxable income