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Real Estate Principles 3rd Edition by David Ling,Wayne Archer
Edition 3ISBN: 978-0073377322Real Estate Principles 3rd Edition by David Ling,Wayne Archer
Edition 3ISBN: 978-0073377322 Exercise 22
Use the following information to answer questions 3-5:
Five years ago you purchased a small apartment complex for $1 million. You borrowed $700,000 at 12 percent for 25 years with annual payments. The original depreciable basis was $750,000 and you have used 27 1 / 2 -year straight-line depreciation over the five-year holding period. Assume no capital expenditures have been made since acquisition. If you sell the property today for $1,270,000 in a fully taxable sale:
Over the entire five-year holding period, how much were your taxes from rental operations reduced by the annual depreciation deductions
Five years ago you purchased a small apartment complex for $1 million. You borrowed $700,000 at 12 percent for 25 years with annual payments. The original depreciable basis was $750,000 and you have used 27 1 / 2 -year straight-line depreciation over the five-year holding period. Assume no capital expenditures have been made since acquisition. If you sell the property today for $1,270,000 in a fully taxable sale:
Over the entire five-year holding period, how much were your taxes from rental operations reduced by the annual depreciation deductions
Explanation
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In order to determine the amount of taxe...
Real Estate Principles 3rd Edition by David Ling,Wayne Archer
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