2. Vacation Condo Investment. Elizabeth Bennett, a caterer from Columbus, Mississippi, is considering buying a vacation condominium apartment for $265,000 in Park City, Utah. Elizabeth hopes to rent the condo to others to keep her costs down. Answer the following questions to help Elizabeth with her decisions:

(a) Elizabeth’s $210,000, 30-year mortgage loan has a seven percent interest rate and costs $16,766 annually

(from Table 9.4 on page 267). She fi gures that

$14,900 of her mortgage payments will go for interest during the fi rst year. On top of that are monthly expenses for property taxes ($140), homeowner’s insurance ($80), and homeowner’s association fee

($100). Which of these costs will be tax deductible?