Question

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. You are in the 28% tax bracket. How much will owning this home lower your federal income taxes by?

Answer 1

Answer:

$3,360.

Explanation:

Given that 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 and you are in the 28% tax bracket. We need to find out by how much will owning the home lower your federal income taxes by.

That is done by $12000*0.28 = $3,360.

Therefore the correct answer is $3,360.