6,025

Question Feedback[Section 18 Slide 31]; To solve this problem you total The county tax and city tax mills together. 6 mills + 6.5 mills = 12.5 mills. Convert into a decimal: .0125. Take $350,000 applicable homestead exemptions of $50,000 = $300,000 x .0125 = $3,750 taxes due for county and city. Then take $350,000 and subtract school applicable exemptions of $25,000 = $325,000 x .007 (7 mills converted to decimals) = $2,275 taxes due for school. Add $3,750 + $2,275 = $6,025 Total Tax Due Brigg bought a house last year when he paid $5,000 in discount points. Over the past year he also paid $8,575 in mortgage interest, $6,200 in principal payments, $1,300 in property tax, $750 in mortgage insurance, $900 in property insurance, and $1,500 in maintenance. Which expenses are deductible from his federal taxes? $4,846.20

Question Feedback[Section 18 Slide 31] $301,000 -$50,000 = $251,000 x .0126 (8.6 mils + 4 mils =12.6 mils) = $3,162.60; $301,000 - $25,000=$276,000 x .0061 (6.1 mils) = $1,683.60; $3,162.60+ $1,683.60 = $4,846.20