Business, 21.04.2020 20:43 hjamya17

5 years ago you purchased a small apartment complex for $1 million. You borrowed $700,000 at 7% for 25 years with monthly payments. The original depreciable basis was $750,000 and you have used 27 1/2 years of straight line depreciation over the 5 year holding period. Assume no CAPX have been made since the property was acquired. If you sell the property today for $1,270,000 in a fully taxable sale. What will be the taxes due on sale

Answers: 1

Show answers

Answers

Answer from: travyse

The taxes due on sale or capital gain tax is $23,454.55.

Data and Calculations:

Cost of apartment complex = $1 million

Loan amount = $700,000

Interest rate = 7%

Annual interest expense = $49,000 ($700,000 x 7%)

Loan payment period = 25 years

Depreciable basis at purchase = $750,000

Depreciation period = 27.5 years

The Depreciation expense per year based on the straight-line method = $27,272.73 ($750,000/27.5)

The accumulated depreciation after 5 years = $136,363.65 ($27,272.73 x 5).

The book value of apartment after 5 years = $863,636.35 ($1,000,000 - $136,363.65).

Sales proceeds = $1,270,000

Gain on sale of apartment = $406,363.65 ($1,270,000 - $863,636.35)

Capital gain after deductible, assuming you lived in the apartment alone = $156,363.65 ($406,363.65 - $250,000)

Capital gain tax = $23,454.55 ($156,363.65 x 15%)

Thus, the taxes due on sale or capital gain tax is $23,454.55.

Learn more about capital gain tax here: link

Answer from: shaniqwakirkseyniqwa

The taxes due on sale is descibed as below

Explanation:

The following is the calculaton of purchased apartment complex and all deduction are also be calculated and taxes due on sale is descibed as following, all the calculation on the basis of 5years.

Acqusiotion cost = 1000000; original depreciable basis = $750,000 for 27.5 years

Therefore, using SLM we have

the Annual depreciation deduction = $750000/27.5 = $27272.73

Total depreciation over 5 years = 5 into $27272.73 = 136364

Tax saved due to the depreciation = 136364 into Tax rate

Answer from: Quest

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )

Answer from: Quest

lives by a moral and ethical code

Another question on Business

Business, 21.06.2019 22:30

Match the vocabulary word to the correct definition. 1. human resources department 2. job description 3. ethics 4. labor relations 5. occupational safety & health administration a. a detailed list of the functions and requirements for a position b. the exchange between the employer and employee c. principles that define appropriate conduct d. the government agency responsible for monitoring safety in the workplace e. the division of a business responsible for hiring, managing,maintaining, and firing the workforce

Answers: 1

Answer

Business, 22.06.2019 07:30

Which of the following is an example of an unsought good? a. cameron purchases a new bike. b. jordan buys paper towels. c. taylor buys cupcakes from her favorite bakery. d. riley buys new windshield wipers for her car.

Answers: 3

Answer

Business, 22.06.2019 09:40

Catherine de bourgh has one child, anne, who is 18 years old at the end of the year. anne lived at home for seven months during the year before leaving home to attend state university for the rest of the year. during the year, anne earned $6,000 while working part time. catherine provided 80 percent of anne's support and anne provided the rest. which of the following statements regarding whether anne is catherine's qualifying child for the current year is correct? a.anne is a qualifying child of catherine.b.anne is not a qualifying child of catherine because she fails the gross income test.c.anne is not a qualifying child of catherine because she fails the residence test.d.anne is not a qualifying child of catherine because she fails the support test.

Answers: 2

Answer

Business, 22.06.2019 17:40

To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.

Answers: 3

Answer

You know the right answer?

5 years ago you purchased a small apartment complex for $1 million. You borrowed $700,000 at 7% for...

Questions