CLIENT \#7: CRAIG Craig is single. After years of saving for a down payment on a house, he finally purchased his first home last year. He paid $515,000 for his house, made a 20% down payment to avoid PMI, and purchased 3 points on his mortgage. Box \#1 on Craig's W-2 form reads "103229.45". Box \#2 reads "21413.63". ADJUSTMENTS Bank interest earned: $9.08 Stock dividends received: $216.05 Loss from sale of stock: $1,398.46 Student loan interest repaid: XXXXX (It was year \#6 of Craig's student loan repayment. He is repaying a $48,000 subsidized student loan with standard repayment. His loan APR is 4.05%) POSSIBLE DEDUCTIONS Mortgage interest on year \#1 of Craig's mortgage: XXXXX Cost of points on Craig's mortgage: XXXXX Property tax paid: $11,926.36 Calculate a. Craig's federal income tax refund due/tax owed. b. The number of months Craig must remain in his home for the cost of the points to be worthwhile. CLIENT \#7: CRAIG Craig is single. After years of saving for a down payment on a house, he finally purchased his first home last year. He paid $515,000 for his house, made a 20% down payment to avoid PMI, and purchased 3 points on his mortgage. Box \#1 on Craig's W-2 form reads "103229.45". Box \#2 reads "21413.63". ADJUSTMENTS Bank interest earned: $9.08 Stock dividends received: $216.05 Loss from sale of stock: $1,398.46 Student loan interest repaid: XXXXX (It was year \#6 of Craig's student loan repayment. He is repaying a $48,000 subsidized student loan with standard repayment. His loan APR is 4.05%) POSSIBLE DEDUCTIONS Mortgage interest on year \#1 of Craig's mortgage: XXXXX Cost of points on Craig's mortgage: XXXXX Property tax paid: $11,926.36 Calculate a. Craig's federal income tax refund due/tax owed. b. The number of months Craig must remain in his home for the cost of the points to be worthwhile