Federal income tax return

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1. Dave bought a rental property for $560,000 cash. One year later, he sold it for $575,000. What was the return on his $560,000 investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places.)

2. Assume your home is assessed at $285,000. You have a $213,000 loan for 20 years at 5 percent. Your property tax rate is 1.2 percent of the assessed value. In year one, you would pay $10,650 in mortgage interest and $3,420 in property tax (1.2 percent on $285,000 assessed value). What is the total deduction you can take on your federal income tax return?

Reference no: EM133110084

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