Jim already uses itemized deductions when calculating his taxable income and thus he expects his mortgage interest and property taxes to be fully deductible from his income. He currently rents a loft and is thinking of buying a single family home and using it as his primary residence. The purchase price of the house is $170,000 and he is going to use a 80% LTV mortgage to finance the purchase. This mortgage will have an interest rate of 3% and a term of 15 years. The property taxes on the property are currently $5,000/year. His marginal tax rate is 24%. What is the tax benefit associated with the first year of ownership (assume that he will close on the house on January 1st, such that the first year of ownership perfectly coincides with a tax year).