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A person was considering buying a house priced at $210,000. A mortgage company claimed the interest rate for the 20-year loan is 4.00%. The company also estimated that the points and Appraisal, Credit Report, Processing, Document Preparation, Administration, Underwriting, Flood Certificate, Tax Service, Wire Transfer, and other fees would be $12,000 in total.

How much interest charge could this person claim for deduction in the 2016 Tax Return, i.e. the total interest occur during year 2016?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92795384

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