This report shows the results of a projected sale of the planEASe Office Development on 31 December 2019. The Sale Price of $7,250,545 is projected by using a Net Capitalization Rate of 7.5% on the Net Operating Income of $543,791 projected to be received during the next 12 months, according to the analysis assumptions.
Analysis of Sale Proceeds | |||
Sale Price (as discussed above) | $7,250,545 | ||
- Costs of Sale (4%) | 290,022 | ||
- Loan Balances | 2,570,607 | ||
- Prepayment Penalties | 0 | ||
Sale Proceeds Before Tax | $4,389,916 | ||
Analysis of Capital Gain Results | |||
Sale Price | $7,250,545 | ||
- Capitalized Costs of Sale (100%) | 290,022 | ||
Net Sale Price for Tax Purposes | $6,960,523 | ||
Property Basis at Acquisition | $0 | ||
+ Capitalized Closing Costs (100%) | 0 | ||
+ Capital Additions | 4,682,134 | ||
- Depreciation Taken | 649,691 | ||
+ Excess Depreciation Recaptured | 0 | ||
Adjusted Basis at Sale | 4,032,443 | ||
Capital Gain (or Loss) | $2,928,081 | ||
- Suspended Passive Losses | 0 | ||
Net Capital Gain (or Loss) | $2,928,081 | ||
- Cost Recovery Recaptured | 649,691 | ||
Adjusted Net Capital Gain (or Loss) | $2,278,390 | ||
Cost Recovery Recapture Tax (@ 25%) | (162,423) | ||
Tax on Adjusted Net Capital Gain (@ 15%) | (341,758) | ||
Expenses Recognized at Sale | |||
Expensed Costs of Sale | 0 | ||
+ Accrued Loan Interest | 0 | ||
+ Unamortized Points | 0 | ||
+ Prepayment Penalties | 0 | ||
- Excess Depreciation Recaptured | 0 | ||
Total Expenses Recognized at Sale | 0 | ||
Tax Savings Due to Sale Expenses (@ 35%) | 0 | ||
Net Taxable Income | $2,928,081 | ||
After Tax Cash Proceeds of Sale | $3,885,735 |