Assumptions Property Purchase Price Mortgage Equity Position at Purchase Property Hold Period Property Sale Price $ in MM $100.00 $75.00 $25.00 3 years $120.00 Capital Gains Tax Rate Accumulated Depreciation Tax Rate Depreciation Allocation to Structure Depreciation Allocation to Structure Depreciation Schedule 15.00% 25.00% 70.00% $70.00 39 years Tax Calculations Tax on Gain Property Appreciation Capital Gains Tax at 15% $40.00 $6.00 Tax on Depreciation Annual Depreciation Accumulated Depreciation Depreciation Tax at 25% $1.92 $5.769 $1.44 Net Equity Calculations 3.00% Equity Position at Sale Property Sale Fees Capital Gains Tax Depreciation Tax Net Equity after Sale ($6.00) ($1.442) Assumptions Property Purchase Price Mortgage Equity Position at Purchase Property Hold Period Property Sale Price $ in MM $100.00 $75.00 $25.00 3 years $120.00 Capital Gains Tax Rate Accumulated Depreciation Tax Rate Depreciation Allocation to Structure Depreciation Allocation to Structure Depreciation Schedule 15.00% 25.00% 70.00% $70.00 39 years Tax Calculations Tax on Gain Property Appreciation Capital Gains Tax at 15% $40.00 $6.00 Tax on Depreciation Annual Depreciation Accumulated Depreciation Depreciation Tax at 25% $1.92 $5.769 $1.44 Net Equity Calculations 3.00% Equity Position at Sale Property Sale Fees Capital Gains Tax Depreciation Tax Net Equity after Sale ($6.00) ($1.442)