What will be the taxes on the sale

Assignment Help Financial Management

Reference no: EM131525234

Five years ago, you purchased a small apartment complex for $1M. You borrowed 700k at 12% for 25 years with annual payments. The original depreciable basis was $750k and you have used 27.5 year straight line depreciation over the 5 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, what will be the taxes on the sale? Assume 6% selling cost, 33% ordinary income tax rate, 15% capital gains tax rate, and a 25% recapture rate.

Reference no: EM131525234

Questions Cloud

Equal employment opportunity commission web : Visit the Equal Employment Opportunity Commission Web. Pay particular attention to the "Statistics" tab on the "About EEOC" menu.

Determine the times-interest-earned ratio : The Rivoli Company has no debt outstanding, and its financial position is given by the following data.

Describe the operations of the firm or firms within industry : Choose a perfectly competitive supplier or industry. Briefly describe the operations of this firm or the firms within the industry.

Explain the problems presented in the divine command theory : Explain the problems presented in Plato's rebuttal of the Divine Command theory

What will be the taxes on the sale : If you sell the property today for $1,270,000 in a fully taxable sale, what will be the taxes on the sale?

Determine in which type of market the product is sold : Determine in which type of market the product is sold (perfect competition, monopoly, oligopoly, monopolistic competition).

How would you have solved the problems of organized crime : Prohibition is a term describing an era of organized crime and illegalized alcohol during the 1920s. How would you have solved the problems of organized crime

How much money must you pay into an account : How much money must you pay into an account at the beinning of each of the next 10 years to have $35,000 at the end of the tenth year?

What assumptions are necessary to exploit given opportunity : What arbitrage opportunity is available? What assumptions are necessary to exploit this opportunity? What should be the share price for Omega Technology?

User Account

All Pages