SYSTEM 3 7SV 5187 115 There is an exception for the use test

SYSTEM 3 7SV 5187 115. There is an exception for the use test for individuals with a disability. Which one of the following statements is correct in this regard? a. You do not have to meet the 2-out-of-5-year ownership test. b. You owned and lived in your home as your main home for a total of at c. Lliving in a nursing home is time that does not meet the ownership d. You owned and lived in your home as your main home for a total of at least one year test. least two years. 116. Which one of the following statements is correct in regard to settlement fees paid when buying your home? a. Settlement fees you pay for buying your home cannot be included in b. Setlement fees paid for obtaining a mortgage loan cannot be included c. Setlement fees include amounts placed in escrow for the future d. Setlement fees include amounts placed in escrow for the future 117. Which one of the following statements is incorrect regarding settlement fees that the basis in the basis. payment of taxes. payment of insurance. may be included in the basis of the home you purchased? a. b. c. d. Legal fees are included in basis. Fire insurance premiums are included in basis. Abstract fees may be included in basis. Survey fees are included in basis. 118. Which one of the following statements is incorrect in regard to settlement fees that may be included in the basis of your home? a. Charges for repairs that you pay for the seller may be included in the basis. b. Sales commissions may be included in the basis. c. Fees for refinancing a mortgage may be included in the basis. d. Transfer fees may be included in the basis. 26

Solution

115) b :- this statement is correct because in general for the test use two years criteria is required. But in case of individual with a disability you only have to meet one year criteria

116) b :- this statement is correct because it is the peersonal expense of the owner of the home.

117) b :- this statement is incorrect because when you purchase home fire insurance premium is not included in the basis, Because it is dependent on the buyer whether to insure the house or not.

118) c :- this statement is incorrect because fees for refinancing a mortgage is npt included in the basis of a home because it is an personal expense.