Calculated Industries 3420 User Guide - Manual (Page 68)

U SER ’ S G UIDE — 67
Mortgage Interest Tax Deduction — 28% or 30% Tax Bracket
What is the Mortgage Interest Tax deduction for the first year (if loan
starts in January*) on a $310,000, 30-year loan at 7.25% interest?
Base it on 28% tax bracket (default). Then, recalculate based on a
30% tax bracket.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 3 1 0 ) l 310,000.00
Enter Interest 7 • 2 5 ˆ 7.25
Enter Term 3 0 T 30.00
Find monthly Payment p “run” 2,114.75
Enter Year 1 1 a “run” 1-12
Find total Interest in Year 1 a 22,376.60
Find total Principal in Year 1 a 3,000.36
Find Prin./Interest in Year 1 a 25,376.96
Find Remaining Balance a 306,999.64
Find Remaining Term a 29.00
Find Mortgage Interest Tax
deduction in Year 1 based
on 28% Tax bracket
a 6,265.45
(etc. — keep pressing a if you want to automatically find next
year’s amortization values and Mortgage Interest Tax deduction.)
Enter 30% Tax bracket 3 0 s + 30.00
Enter Year 1 1 a “run” 1-12
Find total Interest in Year 1 a 22,376.60
Find total Principal in Year 1 a 3,000.36
Find Prin./Interest in Year 1 a 25,376.96
Find Remaining Balance a 306,999.64
Find Remaining Term a 29.00
Find Mortgage Interest
Tax deduction in Year 1 a 6,712.98
Return calculator to 28%
Tax bracket 2 8 s + 28.00
*Note: If loan does not start in January, use the Month Offset feature (e.g., if loan
starts in July, enter
7 s ) and begin problem).
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