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 |