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Siddie Hall's marginal income tax rate is 30%. Her property tax bill for 2018 was $12,000 and her total interest payments on her mortgage were
Siddie Hall's marginal income tax rate is 30%. Her property tax bill for 2018 was $12,000 and her total interest payments on her mortgage were $12,500. In addition, the property insurance cost $2,000 and the maintenance and repairs on the house was $3,000. Based on this information, what is Siddie's total income tax shield (i.e. how much is Ms Hall's saving on her income taxes)? Assume she is not subject to the SALT (State and Local Tax) limitation. (A) $3,600 (B) $3,750 (C) $8,850 (D) $7,350 (E) need to now the average tax rate to answer the
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