Finding investment base investment base is simply if we sold it today, how much would
you be able to walk away with and invest in something else that becomes your
investment base? And should you leave that investor base in the property or go do
something else? What you put in the numbers, if you go to report and go
to sell report, here's the sale proceeds before tax. That's before tax,
investment base or equity. And at the bottom, that shows your after tax sale
proceeds. So that would be your investment base if you chose to sell a property
after tax basis. If we exit, how do we get there? Well, we just want to find out
the sale. So all we need to do is put in the the date that we want to sell
the property. But one year prior. So we're saying we're going to sell the property
January 2007 in this case and that we're going to hold that for one year.
That's why we used one year prior the minimum holding period in plannings of one
year, then a sales price method. We know the sale price we want to put in.
So we drop that down to a specified price and put it a hundred thousand. You could
also do a cap right here and put in the name of the property and use the cap rate
to come up with that price. But it's probably easier to put the specified price
if you know what it's going to be. Then on the investors page, you want to put
in the tax rates here. We're looking at corporate user. So they're using here's
the corporate tax rates. But if you were using a normal investor, it would probably
be 15 for the capital gain and 25 for the cost recovery. You always want to do
losses taken currently. You just click a button and you make sure that they carry
pass of losses is turned off. But here, we're going to do a lead that as well
to say we're doing it. As for a regular investor, then on the depreciation page,
we don't have anything in there. But when we are on the depreciation page, we went
up to edit and said add subs to basis page, which added this page. So subsidy
basis we originally bought the property for. Hundred thousand dollars, so we take
that 500000 dollars and we subtract the prior cost recovery taken first, we put
in the proper cost recovery taken here, and we subtract that from the 500000
and the remaining number here. It's three hundred fifty eight three three three goes
into the substitute basis. So these two should add up to the original basis,
which in this case we're saying is five hundred thousand dollars. And then you go
to the loan page and you can do this a couple of days here. We know the loan
balance right now, so we just put that loan amount in as an interest only zero
payment, which is going to force it to be the amount that's paid off because we're
only doing it for the sale. But you could also put the original loan amount
in the original date and the original loan period. And Chinese will figure out
where the loan balance will be for you. And then we just go up to report, go
to our report and basically print it out. And this is the proceeds from sale that
would likely happen if they actually sold it. And there's the before tax investment
base and there's the after tax investment base. And what we want to do is say
when when we start a new file, you know, should they go do something else? We want
to force that number, the down payment to equal that number, saying here's
the investment base going into this other property. What's the return on that
compared to the property that we're already and they're staying
in the property already? And what will be the IRR of the investment base staying
in property already in? Compare those numbers and you have your decision.
This is also how you do find the investment base for a sale leaseback.
Same same exact process. So that's how that is investment based.