Problem $17-7$ Calculating Net Profit after Taxes $[$LO$17-1]$

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 $1\mathrm{.}0$ percent

of the assessed value. In year one, you would pay $$13,860$ in mortgage interest and $$2,500$ in property tax $(1\mathrm{.}0$ percent on $$250,000$

assessed value$).$

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

Federal income tax deduction amount