1 Jackie is in the 28% marginal tax bracket and has no other itemized deductions except those related to her home. If her standard deduction is $4,750 and she incurs the following costs related to housing, how much tax savings will she receive as a result of her home purchase?

Mortgage interest $14,000

Principal repayment $800

Homeowner’s insurance $1,000

Real estate taxes $4,000

Homeowner’s association fees $1,200

(Points : 4)

$13,250

$5,040

$3,710

$2,800

None

Monthly gross income $5,000

Car payment $400

Student loan payment $300

Current rent payment $1,000

(Points : 4)

$1,700

$1,600

$900

$600

$500