1. Calculate Estimated Initial Outlay
2. Calculate Estimate Net Operating Income
3. Calculate Estimated Cash Flow Before Taxes
4. Calculate Estimated Tax Expense
5. Calculate Estimated Cash Flow After Taxes
6. Calculate Estimated Property Selling Price
7. Calculate Estimated Property Sale Proceeds Before Tax
8. Calculate Estimated Property Adjusted Tax Basis
9. Calculate Estimated Tax Gain or (Loss) for Property Sale
10. Calculate Estimated Tax Expense on Property Sale
11. Calculate Estimated After Tax Property Sale Cash Flow
12. Calculate the Estimated After Tax Property Sale Cash Flow
Property Details
Purchase Price,Allocation & Classification Total Purchase Price S 2,100,000 (purchased and placed in service 1/1/Year 1) Building Allocation 70% Land Allocation 30% Depr Classification Commercial Mortgages & Points Mortgage 1 (30 years @ 7.50%) $ 1,000,000 Mortgage 2 (15 years @ 6.25%) $ 400,000 Mortgage 3 (10 years @ 10.00% -INT only) $ 70,000 Points Mortgage 1 2% Points Mortgage 2 1% Income &Expense Details(Year 1-Year5 Year 1Gross Scheduled Income $ 575,000 Year 1 Operating Expenses S 275,000 Year 2 - Year 5 Growth (%) in Gross Schedule Income & 2% Operating Expenses Year 1 - Year 5 Vacancy and Credit Loss 4% Marginal Tax Rate 32% Capital Gains Tax Rate 20% Capital Addition(Year1 Capital Improvement $ 100,000 Improvement Placed In Service July Year 1 Property Sale Year 5 Sell Property (12/31/Year 5) Broker Selling Fee(% of selling Price 4% Attorney Selling Fee(% of selling Price) 2% Capitalization Rate 12%