Finance
Massachusetts first-time homebuyers may benefit from the federal mortgage interest deduction, which allows them to:
ADeduct the entire mortgage payment from income
BDeduct mortgage interest paid on their primary residence from federal taxable income (if they itemize deductions)✓ Correct
CReceive a tax credit equal to 20% of interest paid
DDeduct Massachusetts property taxes only
Explanation
The federal mortgage interest deduction allows homeowners who itemize federal deductions to deduct qualifying mortgage interest paid on their primary (and sometimes secondary) residence from their taxable income.
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