Assume your home is assessed at $260,000. You have a $172,000 loan for 20 years at 8 percent. Your property tax rate is 1.3 percent of the assessed value. In year one, you would pay $13,760 in mortgage interest and $3,380 in property tax (1.3 percent on $260,000 assessed value).

Assuming you are in a 28 percent tax bracket, by what amount would you have lowered your federal income tax? Note: Round your answer to 2 decimal places.

Federal Income Tax Reduction Amount : ______