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Calculation of After Tax Cash Flow from Operations if NOT sold YEAR 1 2 3 4 5 Rent $49,883 $51,379 $52,921 $54,508 $56,143 Expenses 24,941
Calculation of After Tax Cash Flow from Operations if NOT sold
YEAR | 1 | 2 | 3 | 4 | 5 |
Rent | $49,883 | $51,379 | $52,921 | $54,508 | $56,143 |
Expenses | 24,941 | 25,690 | 26,460 | 27,254 | 28,072 |
Net operating income | 24,941 | 25,690 | 26,460 | 27,254 | 28,072 |
Debt service | 31,315 | 31,315 | 31,315 | 31,315 | 31,315 |
Before tax C.F. | -6,373 | -5,625 | -4,854 | -4,060 | -3,243 |
Net Operating Income | 24,941 | 25,690 | 26,460 | 27,254 | 28,072 |
Interest | 27,628 | 27,201 | 26,725 | 26,194 | 25,601 |
Depreciaiton | 14,947 | 14,947 | 14,947 | 14,947 | 14,947 |
Taxable income | -17,634 | -16,459 | -15,212 | -13,887 | -12,477 |
Tax | -4,937 | -4,608 | -4,259 | -3,888 | -3,494 |
Before tax C.F. | -6,373 | -5,625 | -4,854 | -4,060 | -3,243 |
Tax | -4,937 | -4,608 | -4,259 | -3,888 | -3,494 |
After tax cash flow | -1,436 | -1,017 | -595 | -172 | 251 |
Calculation of after tax cash flow from sale:
1 | 2 | 3 | 4 | 5 | |
Sale price | $386,250 | $397,838 | $409,773 | $422,066 | $434,728 |
Morggage balance | 249,130 | 245,017 | 240,427 | 235,307 | 229,593 |
Selling expenses | 23,175 | 23,870 | 24,586 | 25,324 | 26,084 |
B.T.C.F. | 113,945 | 128,950 | 144,759 | 161,435 | 179,051 |
Sale price | 386,250 | 397,838 | 409,773 | 422,066 | 434,728 |
Selling expenses | 23,175 | 23,870 | 24,586 | 25,324 | 26,084 |
Orig. Cost basis | 355,000 | 355,000 | 355,000 | 355,000 | 355,000 |
Accum Deprec. | 89,684 | 104,632 | 119,579 | 134,526 | 149,474 |
Adjusted basis | 265,316 | 250,368 | 235,421 | 220,474 | 205,526 |
Total taxable gain | 97,759 | 123,599 | 149,765 | 176,268 | 203,118 |
Capital gains tax | 27,373 | 34,608 | 41,934 | 49,355 | 56,873 |
ATCF - Rev. | 86,572 | 94,343 | 102,825 | 112,080 | 122,178 |
Using the information given above, please show me your detailed process for computing:
MRR from selling property at year 5 instead of year 4.
PLEASE SHOW WORK SO I CAN UNDERSTAND ANSWER :-)
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