TOPIC: Income and taxes. Assignment: Part A. Identify: 1. Net Operating Income (Cash Flow Before Debt Service) and 2. Identify Taxable profit or loss from the following scenario. Gross Annual Income $75,000 Allowable depreciation 2.56% of building value Property value $1,000,000 Operating expenses $ 35.000 Land Value $250,000 Interest on Loan $37,000 Part B: What is the tax exclusion for sellers of a primary residence? How long must you have lived in the home