Final answer:
The statement is False. The decision to claim the standard deduction or itemize when purchasing a home depends on the individual's financial situation and deductible expenses.
Step-by-step explanation:
The statement Many taxpayers who previously itemized will start claiming the standard deduction when they purchase a home. is False.
When taxpayers purchase a home, it does not automatically change their decision to claim the standard deduction or itemize their deductions on their tax return. Whether an individual decides to claim the standard deduction or itemize depends on their overall financial situation and the amount of eligible deductible expenses they have.
For example, if a taxpayer's itemizable deductions such as mortgage interest, property taxes, and charitable contributions amount to more than the standard deduction, it may be more beneficial for them to itemize. On the other hand, if their itemizable deductions are below the standard deduction, it would be more advantageous for them to claim the standard deduction.