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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Problem 3. ATCF from Building Sale
You are selling your building for $18,000,000, with 4.5% in selling costs. You have take $3,000,000 in depreciation and put 600,000 into capital improvements over the period you owned the building, which you purchased for $15,000,000 and incurred 25,000 in acquisition costs. Your original loan was for 10,500,000 which you took out 5 years ago, with a 5.25% interest rate with a 25 year amortization period. Depreciation recapture tax rate is 28.8% and capital gains tax rate is 23.8%.
What is your selling expense?
What is your net selling price?
What is your loan payoff?
What is your BTCF from sale?
What is your adjusted basis?
What is your gain on sale?
What is your depreciation recapture tax?
What is your capital gain tax?
What is your total tax on sale?
What is your ATCF from sale?
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