Ella's main home was foreclosed in 2021. Ella received Forms 1099-C reporting the following amounts of canceled debt: • $10,000 in acquisition debt. • $5,000 of a home equity loan. Ella used the funds from this loan to purchase a new car. How much of this cancellation of debt is excludable from Ella's 2021 income under the qualified principal residence exclusion?  $0. The qualified principal residence exclusion does not apply to debt canceled in 2021.  $5,000.  $10,000.  $15,000.

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Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.