True or False:
1. If you are single and sell your house, the maximum amount of gain you may be able to exclude is $125,000. True False
2. If you are married and sell your house, the maximum amount of gain you may be able to exclude is $500,000. True False
3. You can qualify for the exclusion of gain on the sale of a home even though you never used it as a principal residence. True False
4. You can rent your home to someone for less than 15 days a year and not have to report the rent for income tax purposes. True False
5. You figure the amount of equity in your home for purposes of getting a home equity loan by subtracting the amount of the mortgage on your home from its market value. True False
6. A home equity mortgage can be a source of tax-free cash. True False
7. You can't deduct interest on credit card balances but you may be able to deduct interest on a home equity loan. True False
8. The value of improvements you make to your home yourself, like a new bedroom, is not covered by the home sale exclusion. True False
9. When you sell your home to trade up to a bigger home, you can get tax free cash for yourself from a mortgage on the new home. True False
10. The rule permitting the exclusion of gain on the sale of your principal residence applies to only one sale in a lifetime. True False
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