Assume your home is assessed at $250,000. You have a $198,000 loan for 20 years at 7 percent. Your property tax rate is 1 percent of the assessed value. In year one, you would pay $13,860 in mortgage interest and $2,500 in property tax (1 percent on $250,000 assessed value). What is the total deduction you can take on your federal income tax return?

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