Explanation should include

deductibility of home-loan interest and real estate taxes from taxable income
deductibility of certain loan origination fees, loan discount points, and loan prepayment penalties
introduction of the 1031 exchange as it applies to investment property

DPOR correlations: 18VAC135-20-400. 10 (Home ownership); 18VAC135-20-400. 13 (Taxes in real estate)

Process/Skill Questions:

How has recent legislation affected the ability of homeowners to claim certain tax deductions?
How does payment of loan interest affect personal income taxes?
Under what circumstances can a homeowner defer payment of tax on profit?
Under what circumstances might a residence be sold at a profit with no tax liability?
What investment considerations should be made when considering home ownership?
Why would a homeowner want to hold onto property for more than two years, considering capital gains tax?
What can a homeowner do with the equity in their property?