Given a 25% tax bracket, the after-tax cost of a house mortgage interest payment of $1,000 would be:
A) $ 250.
B) $ 750.
C) $1,000.
D) $1,250.

Name: Given a 25% tax bracket, the after-tax cost of a house mortgage interest payment of $1,000 would be: A) $ 250. B) $ 750. C) $1,000. D) $1,250.
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Quizplus · Accepted Answer

Interest on a home mortgage is tax deductible. The $1,000 interest is sheltered from the tax rate of 25 %. This saves the taxpayer $250, yielding an after-tax cost of $750.

Given a 25% Tax Bracket, the After-Tax Cost of a House