Brenda is in the 28% marginal tax bracket and has no other itemized deductions except those related to her home. If her standard deduction is $6,300 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.............................................$13,000
Principal repayment................................................800
Homeowner's insurance.........................................1,000
Real estate taxes.................................................4,000
Homeowner's association fees.................................1,200
Select one:
a. $10,700
b. $2,996
c. $4,760
d. $17,000
e. none