User Manual

25
175200
2
40296 3
40,296.00 1st year operating cost.
1200000 4
1,200,000.00 Depreciable value.
35 5
35.00 Depreciable life.
50 7
50.00 Marginal tax rate.
3.5 8
3.50 Potential Gross Income
1.6 9
1.60 Operating cost growth rate.
7 0
7.00 Vacancy rate.
31
7.00 Go to dep. step.
32- 42
23
Change to SL.
1.00
18,021.07
Year 1
ATCF
1
2.00
20,014.26
Year 2
ATCF
2
3.00
22,048.90
Year 3
ATCF
3
4.00
24,123.14
Year 4
ATCF
4
5.00
26,234.69
Year 5
ATCF
5
After-Tax Net Cash Proceeds of Resale
The After-Tax Net Cash Proceeds of Resale (ATNCPR) is the after-tax reversion
to equity; generally, the estimated resale price of the property less commissions,
outstanding debt and any tax claim.
The After-Tax Net Cash Proceeds can be found using the HP-12C program
which follows. In calculating the owner's income tax liability on resale, this
program assumes that the owner elects to have his capital gain taxed at 40% of
his Marginal Tax Rate. This assumption is in accordance with a 1978 Federal tax
ruling.
*
(
*
Federal Taxes, code sec. 1202 (32,036))
This program uses declining balance depreciation to find the amount of
depreciation from purchase to sale. This amount is used to determine the excess
depreciation (which is equal to the amount of actual depreciation minus the
amount of the straight line depreciation).