Suppose you are purchasing a $600,000 house with 5% down and a mortgage fully amortized over 30 years at 4.0% interest. If property taxes are 1.1% of the purchase price how much can you deduct from your taxes during the first full year of ownership? Assume you are able to itemize deductions.

Select one:

a. $36,600

b. 35,100

c. 29,217

d. It cannot be determined without knowing the tax rate