Assume your home is assessed at $225,000. You have a $166,000 loan for 20 years at 5 percent. Your property tax rate is 1.0 percent of the assessed value. In year one, you would pay $8,300 in mortgage interest and $2,250 in property tax (1.0 percent on $225,000 assessed value).

Assuming you are in a 28 percent tax bracket, by what amount would you have lowered your federal income tax? (Do not round intermediate calculations. Round your answer to 2 decimal places.)