MBS Real Estate, LP Real Estate Transaction Notes 12/31/X8 Sale Offer Details Selling price 3,750,000 Estimated closing costs 318,750 Proposed closing date 12/31/X8 Real Estate Holding Undeveloped commercial land, 150 acres Held for investment through MBS Land, LLC (DRE of MBS Real Estate, LP) DRE = Disregarded Entity Populate details from closing statement Date of acquisition 6/30/20X7 Original purchase price 2,500,000 Total closing costs 152,992 Capitalized costs post acquisition - Property taxes 94,226 - Survey costs 4,700 - Legal fees 8,950 - Casualty insurance premiums 2,825MBS Real Estate, LP Like-Kind Exchange Analysis 12/31/%8 Calculate the gain if MBS Real Estate decides to sell by utilizing a section 1031 like-kind exchange. Mote that the gain calculated on the "Capital Gain\" tab is eligible for deferral if all proceeds are utilized in the like-kind exchange. If the identified property is worth more than what was sold, additional cash may be required to close the deal. Like-Kind Property Received Cash Received 250,000 Replacement property Warehouse an 20 acres of land FIIV of replacement property - Warehouse 950,000 - Land 3,100,000 - Furniture & Fixtures 125,000 Total FMV 4,175,000 Estimated closing costs 285,000 Intermediary fes 1,500 Calculate Gain Amaount realized from property Amount realized from boot Total amount realized Adjusted basis Cash needed to close Closing costs & fees Gain realized Gain recognized Gain deferred Like-Kind Property Given Detailed on Notes tab Undeveloped commercial land, 150 acres Proceeds received from land sale 2,657,462 Total value of 1031 ass=t 2,500,000 Additional cash needed to close 157,462 How many days to identify property? 45 How many days ta close? 130 Basis of like-kind property received - Simplified Method FrW of like-kind received [-) Deferred gain [+) Deferred loss | I 9 Basis of like-kind property received Basis of like-kind property received - Section 1031(d) Ad]. basis of like-kind surrendered [+) Adjusted basis of boot given [+) Gain recognized [-) FMV boot received [~} Loss recognized Basis of like-kind property received