PROPERTY AND INVESTOR DATA SUMMARY

Transcription

1 PROPERTY AND INVESTOR DATA SUMMARY FORM 1 Property Aress Ivestor Prepare By Greg Swa Date 8/15/2005 PURCHASE PRICE $ 225,000 a LAND ALLOCATION 20% IMPROVEMENT ALLOCATION (%) x 80% % IMPROVEMENT VALUE $ 180,000 b Amout Rate (%) Aual Iterest 1st Loa $ 112,500 x 6.50% = $ 7, Loa $ x = $ 0 TOTAL= $ 112,500 c = $ 7,313 Dow Paymet $ 112,500 Closg Costs. + $ 3,500 e Ital Ivestmet = $ 116,000 f Gross Scheule Icome (mothly ret $ 1,050 x 12) = $ 12,600 g Aual Vacacy Allowace ( 10% x g ) = $ 1,260 % ANNUAL OPERATING EXPENSES Ivestor's Tax Bracet (%) % Property Taxes 1,623 Holg Pero Isurace 600 Aual Property Utltes 0 Apprecato Rate (%) % Mateace 600 Projecte Cost of Sale (%) % Other Ivestor's Pre-Tax. Ivestmet Rate (%) % TOTAL.. $ 3, mus 28% j = x 0.72 tax bracet Ivestor's After-Tax Ivestmet Rate % h j l m

2 CASH FLOW BEFORE TAXES Gross Scheule Icome.. $ 12,600 g LESS: Vacacy Allowace.. - $ 1,260 h GROSS OPERATING INCOME. = $ 11,340 LESS: Total Operatg Expeses... - $ 3,283 NET OPERATING INCOME = $ 8,057 LESS: Aual Iterest Paymets.. - 7,313 CASH FLOW BEFORE TAXES = $ 745 The preparer accepts o expresse or mple lablty ue to the cotets of ths report. Although all facts, fgure a projectos have bee obtae from sources eeme relable a are beleve to be correct, o guaratee or lablty s assume by ts author. These forms assst the aalyss of real estate vestmets a are ot tee to comprehesvely aalyze the tax ramfcatos for a vual vestor. As wth ay vestmet, your persoal tax cousel shoul be cotacte. FORM 2

3 CASH FLOW AFTER TAXES NET OPERATING INCOME (Form 2). $ 8,057 LESS: Aual Iterest Paymets. - $ 7,313 LESS: COST RECOVERY (Compute Below) To Calculate Cost Recovery: Improvemet Value $ 180,000 b Dve by Cost Recovery Pero 27.5 yrs. Aual Cost Recovery $ 6,545-6,545 TAXABLE INCOME OR (LOSS). = $ -5,801 TIMES: Ivestor's Tax Bracet (%).. x 28% j TAX SAVINGS (f egatve) or = $ -1,624 TAX LIABILITY (f postve) CHANGE SIGN CASH FLOW BEFORE TAXES (Form 2). $ 745 * TAX SAVINGS OR LIABILITY. + 1,624 CASH FLOW AFTER TAXES.. = $ 2,369 * If CFBT s egatve: A tax savgs wll reuce the egatve cash flow. A tax lablty wll crease the egatve cash flow. * If CFBT s postve: A tax savgs wll crease the postve cash flow. A tax lablty wll reuce the postve cash flow. FORM 3

4 TAX DUE ON SALE Purchase Prce.. $ 225,000 Aual Apprecato Rate (%) 11.00% Holg Pero a l PV PROJECTED SALES PRICE: (Solve for ) $ 518,521 o LESS: Projecte Cost of Sale(%): 9.00% ( x ) - $ LESS: Ajuste Bass- To Calculate Ajuste Bass: Purchase Prce..... $ 225,000 a PLUS: Closg Costs ,500 e LESS: Total Cost Recovery: 46,667 m o p $ 6,545 (Aual Cost) Recovery (Form 3) x 8 Holg Pero - 52,360 Ajuste Bass $ 176,140 - TOTAL TAXABLE GAIN ON SALE.. = To Calculate Recapture Tax: 176, ,714 r Recapture Total Cost Recovery Tae $ 52,360 Tax Rate (%) x 25% Tax Due from Recapture of Cost Recovery = $ 13,090 $ 13,090 To Calculate Balace of Captal Gas Tax: Total Taxable Ga $ 295,714 Less: Total Cost of Recovery Tae (Recapture) - 52,360 r Balace of Captal Ga = 243,354 Tmes Captal Gas Tax Rate (%) x 15% Balace of Captal Gas Tax Due From Sale = $ 36, ,503 TOTAL TAX DUE ON SALE = $ 49,593 FORM 4

5 RESIDENTIAL INVESTMENT PERFORMANCE SUMMARY PROJECTED SALES PRICE: = $ 518,521 o LESS: Projecte Cost of Sale:... - $ 46,667 Mortgage Balace Due:.. - $ 112,500 Tax Due o Sale (Form 4) - $ 49,593 p c AFTER-TAX PROCEEDS FROM SALE:.. = $ 309,761 S CASH FLOW AFTER TAX (Form 3):. $ 2,369 Ivestor After-Tax Rate of Retur (%): % Holg Pero:. AMOUNT ACCUMULATED: = 19,935 * T PMT SOLVE FOR TOTAL FUTURE WEALTH: ( S + T ).. = $ 329,696 INITIAL INVESTMENT:. f $ 116,000 PV HOLDING PERIOD: AFTER-TAX RATE OF RETURN/YIELD (%):.. = 13.95% SOLVE FOR *Note: If CFAT s postve, the amout accumulate wll also be postve a represets the amout that aual cash flows woul ear f veste a relatvely safe a lu type vestmet urg the holg pero. If CFAT s egatve, the amout accumulate wll also be egatve, a represets the after-tax lost opportuty cost of usg vestmet captal to meet the aual efct for the urato of the holg pero. FORM 5