Question
When calculating the Tax Liability of an investment, the investor must calculate taxable income and multiply it by their tax rate. The calculation for this
When calculating the Tax Liability of an investment, the investor must calculate taxable income and multiply it by their tax rate. The calculation for this as follows:
| 1. | NOI + PRI - Annual Mortgage Interest = Taxable Income Monthly Mortgage Payments x Tax Rate = Tax Liability | |
| 2. | NOI - Annual Mortgage Interest - Cost Recovery - Improvements - Loan Costs Amortization = Taxable Income x Tax Rate = Tax Liability | |
| 3. | PRI + Annual Mortgage Interest + Cost Recovery - Improvements + Loan Costs Amortization = Taxable Income x Tax Rate = Cost of Goods Sold | |
| 4. | NOI - Annual Mortgage Interest - Cost Recovery - Improvements - Mortgage Payments - Cash Flow after taxes = Taxable Income x Tax Rate = Tax Liability |
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Economics And Personal Finance
Authors: Irvin Tucker, Joan Ryan
1st Edition
1133562108, 978-1133562108
