Helen,who Is Single,is Considering Purchasing a Residence That Will Provide

question 60

Multiple Choice

Helen,who is single,is considering purchasing a residence that will provide an $18,000 tax deduction for property taxes and mortgage interest.If her marginal tax rate is 24% and her effective tax rate is 20%,what is the amount of Helen's tax savings from purchasing the residence?

• A)$3,600
• B)$4,320
• C)$3,200
• D)$18,000

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Definitions:

Tenancy in Common

A form of co-ownership where each party owns a separate fraction of the property and can transfer their interest independently.

Joint Tenancy

Joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenant(s).

Ownership Interests

The rights and stake a person or entity has in property, including the rights to use, sell, or lease it.

Real Property

Land and anything permanently attached to it, such as buildings, in contrast to personal property, which is movable.