When considering a principal residence as a tax shelter, remember that you can

A) purchase a house and deduct the mortgage interest.
B) maintain and improve your home, as $500,000 of capital gains for couples and $250,000 of capital gains for single filers is exempt from taxation.
C) take out a home equity loan to pay for other debts, such as auto financing.
D) use all of these tax-saving strategies.
E) only A and C.


Answer: D

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