Personal Finance 1st Edition by Jack R. Kapoor

Exercise 24

Problems 7 and 8 are based on the following scenario: Calculating Net Profit after Taxes. Assume your home is assessed at $200,000. You have a $150,000 loan for 30 years at 6 percent. Your property tax rate is 1.5 percent of the assessed value. In year one, you would pay $9,000 in mortgage interest and $3,000 in property tax (1.5 percent on $200,000 assessed value). (Obj. 1)

What is the total deduction you can take on your federal income tax return?