If you are in the 25 percent tax bracket and your home mortgage interest is $1,000 per month, then your after-tax mortgage interest cost is $750 per month.

Question

Quizplus · Accepted Answer

The tax deduction allowed by the Internal Revenue Service is $250 (25% times $1,000 interest per month). This is then subtracted from the $1,000 interest payment per month, resulting in an after-tax mortgage interest cost of $750.

If You Are in the 25 Percent Tax Bracket and Your