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YOU MUST CLICK ON FILE ABOVE AND THEN CLICK DOWNLOAD TO USE THIS SPREADSHEET PERSONALLY
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Should You Sell?
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Note: Inputs are items in blue
Tax Calculations
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Old Investment Assumptions
INPUTSAge6.67
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Original Property Basis
 5,000,000 Land Cost 1,250,000
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Land %25%
Personal Property Cost
 25,000
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Personal Property %0.50%
Personal Property A/D
 (25,000)(Assumes SL over 5 years)
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Acquisition Date2/1/2014Building Cost 3,725,000
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NOI 550,000 Building A/D (903,482)(Assumes SL over 27.5 years)
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Sale Cap Rate (Today)
5.50%Total Cost Basis 4,071,518
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Transaction Costs4.00%
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Current Debt Payoff 3,348,000 Proceeds 10,000,000
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Current Annual Debt Service
 241,572 Cost basis (4,071,518)
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Current Interest Rate5.00%Closing Costs (400,000)
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Sale Date9/30/2020Total Gain 5,528,482
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Like Kind Exchange?(drop down box)No
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Subject to NIIT?(drop down box)Yes
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Ordinary Tax Rate37.00%
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GainTax
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New Investment Assumptions
Tax at Ordinary 25,000 9,250
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Leverage on Purchase
70%Tax @ 25% 903,482 225,870
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Purchase Price 16,289,324 Tax @ 20% 4,600,000 920,000
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Cap Rate5.50%NIIT @ 3.8% 5,528,482 210,082
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NOI 895,913 TOTAL Tax on Sale of Original Investment Investment (Yr 1) 1,365,203
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New Debt Balance 11,402,527
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New Debt Interest Rate
3.25%
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New Debt Amortization Term
 30 Investment Analysis
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New Debt Annual Debt Service
$595,494
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Hold Period (In Years)
7
Comparison assuming hold period of 7 years (ignores tax consequences)
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NOI Growth3.00%Old Investment
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Exit Cap Rate (Future)
6.00%
NOI (at end of hold period)
 676,431
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Cap Rate (at exit)6.00%
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Cash Flow AnalysisValue 11,273,844
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Pre-Sale Cash FlowClosing Costs (450,954)
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Pre-Sale NOI 550,000 Debt Principal (2,744,091)
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Pre-Sale Debt Service
 (241,572)Liquidation Proceeds 8,078,799
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Pre-Sale Cash Flow 308,428
Cash Flow Over Hold Period
 2,523,350
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Less Capex Over Hold Period
 (300,000)
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Net Proceeds on Sale
Total Value Over Hold Period
 10,302,149
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Proceeds 10,000,000
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Debt Payoff (3,348,000)New Investment
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Closing Costs (400,000)
NOI (at end of hold period)
 1,101,860
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Tax on Sale (1,365,203)Cap Rate (at exit)6.00%
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Net Proceeds 4,886,797 Value 18,364,330
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Closing Costs (734,573)
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Sources on Purchase
Debt Principal (9,666,050)
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Equity 4,886,797 Liquidation Proceeds 7,963,707
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Debt 11,402,527
Cash Flow Over Hold Period
 2,696,439
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Purchase Price 16,289,324
Less Capex Over Hold Period
 (1,500,000)
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Total Value Over Hold Period
 9,160,146
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Post-Sale NOI
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Pre-Sale Cash Flow 308,428
Value of New Investment
 (1,142,004)
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Debt Service on Purchase
 595,494 Note: This illustration is for discussion purposes only and should not be relied on for tax or investment advice. A competent professional should be consulted on any transaction.
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Post-Sale NOI Required
 903,922
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Cap Rate Required to Match Pre-Sale Cash Flow
5.55%
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