After Tax Cash Flow Analysis

Author: Spencer Burton Property Types:

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Version 1.1
Unlevered After Tax Return Calculation

Summary of Returns Tax Calculation Year 0

Before Tax Unlevered IRR 8.35% Total Depreciable Basis 15,000,000
Before Tax Unlevered EMx 1.95X - RE Depreciated (Cumulative)
After Tax Unlevered IRR 6.18% - CapEx Depreciated (Cumulative)
After Tax Unlevered EMx 1.67X Net Book Value

General Assumptions Net Terminal Value

Gross Purchase Price $15,000,000 - Net Book Value
Land Value $3,750,000 Gain on Sale
Depreciable Basis $11,250,000 Capital Gains Tax Payable @ 15%

Income Tax Rate 35% RE + CapEx Depreciated

Recapture Tax Rate 25% Recapture Tax Payable @ 25%
Capital Gains Tax Rate 15%
1031 Exchange upon Exit? No Net Operating Income
- Capital Expenditures
Project Type Residential Cash Flow from Operations
RE Recoverable Life 27.5 Years + Cap Ex
CapEx Recoverable Life 7.0 Years - RE Depreciation
- CapEx Depreciation
Analysis Period 10.0 Years Taxable Income
Net Terminal Value $20,150,000 Income Tax Payable @ 35%

Total Before Tax Unlevered CF (15,000,000)

Total After Tax Unlevered CF (15,000,000)
 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
15,045,000 15,091,350 15,139,091 15,188,263 15,238,911 15,291,078 15,344,811 15,400,155
409,091 818,182 1,227,273 1,636,364 2,045,455 2,454,545 2,863,636 3,272,727
6,429 19,479 39,349 66,243 100,374 141,956 191,215 199,121
14,629,481 14,253,690 13,872,469 13,485,656 13,093,083 12,694,577 12,289,960 11,928,307

0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0

900,000 913,500 927,203 941,111 955,227 969,556 984,099 998,860

45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344
855,000 867,150 879,462 891,938 904,579 917,388 930,367 943,516
45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344
409,091 409,091 409,091 409,091 409,091 409,091 409,091 409,091
6,429 13,050 19,870 26,895 34,130 41,583 49,259 7,906
484,481 491,359 498,242 505,125 512,006 518,882 525,749 581,863
169,568 171,976 174,385 176,794 179,202 181,609 184,012 203,652

855,000 867,150 879,462 891,938 904,579 917,388 930,367 943,516

685,432 695,174 705,077 715,144 725,377 735,780 746,354 739,864
 Year 9 Year 10
15,457,160 15,515,875
3,681,818 4,090,909
207,265 215,653
11,568,077 11,209,313

0 20,150,000
0 11,209,313
0 8,940,687
0 1,341,103

0 4,306,562
0 1,076,640

1,013,843 1,029,051
57,005 58,715
956,839 970,336
57,005 58,715
409,091 409,091
8,144 8,388
596,609 611,572
208,813 214,050

956,839 21,120,336
748,026 18,488,542
Levered After Tax Return Calculation

Summary of Returns Tax Calculation Year 0

Before Tax Levered IRR 15.26% Total Depreciable Basis 15,000,000
Before Tax Levered EMx 3.58X - RE Depreciated (Cumulative)
After Tax Levered IRR 12.57% - CapEx Depreciated (Cumulative)
After Tax Levered EMx 2.86X Net Book Value

General Assumptions Net Terminal Value

Gross Purchase Price $15,000,000 - Net Book Value
Land Value $3,750,000 Gain on Sale
Depreciable Basis $11,250,000 Capital Gains Tax Payable @ 15%

Income Tax Rate 35% RE + CapEx Depreciated

Recapture Tax Rate 25% Recapture Tax Payable @ 25%
Capital Gains Tax Rate 15%
1031 Exchange at Exit? No Net Operating Income
- Capital Expenditures
Project Type Residential Cash Flow from Operations
RE Recoverable Life 27.5 Years - Debt Service
CapEx Recoverable Life 7.0 Years Cash Flow after Financing
+ Amortization Principal
Analysis Period 10.0 Years + Cap Ex
Net Terminal Value $20,150,000 - RE Depreciation
- CapEx Depreciation
Financing Assumptions Taxable Income
Loan Amount $11,250,000 Income Tax Payable @ 35%
Equity Required $3,750,000
Interest Rate 4.50% Net Terminal Value
Amortization 30.0 Years Loan Payoff
Payment (Annual) $684,025 Net Proceeds from Sale
Loan Payoff at Year 10 $9,010,061
Total Before Tax Unlevered CF (3,750,000)
Total After Tax Unlevered CF (3,750,000)
 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
15,045,000 15,091,350 15,139,091 15,188,263 15,238,911 15,291,078 15,344,811 15,400,155
409,091 818,182 1,227,273 1,636,364 2,045,455 2,454,545 2,863,636 3,272,727
6,429 19,479 39,349 66,243 100,374 141,956 191,215 199,121
14,629,481 14,253,690 13,872,469 13,485,656 13,093,083 12,694,577 12,289,960 11,928,307

0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0

900,000 913,500 927,203 941,111 955,227 969,556 984,099 998,860

45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344
855,000 867,150 879,462 891,938 904,579 917,388 930,367 943,516
684,025 684,025 684,025 684,025 684,025 684,025 684,025 684,025
170,975 183,125 195,437 207,913 220,554 233,363 246,341 259,491
185,247 193,758 202,659 211,969 221,707 231,892 242,545 253,688
45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344
409,091 409,091 409,091 409,091 409,091 409,091 409,091 409,091
6,429 13,050 19,870 26,895 34,130 41,583 49,259 7,906
-14,297 1,092 16,875 33,069 49,688 66,749 84,269 151,526
0 382 5,906 11,574 17,391 23,362 29,494 53,034

0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0

170,975 183,125 195,437 207,913 220,554 233,363 246,341 259,491

170,975 182,743 189,531 196,339 203,163 210,001 216,847 206,457
 Year 9 Year 10
15,457,160 15,515,875
3,681,818 4,090,909
207,265 215,653
11,568,077 11,209,313

0 20,150,000
0 11,209,313
0 8,940,687
0 1,341,103

0 4,306,562
0 1,076,640

1,013,843 1,029,051
57,005 58,715
956,839 970,336
684,025 684,025
272,814 286,311
265,342 277,532
57,005 58,715
409,091 409,091
8,144 8,388
177,926 205,079
62,274 71,778

0 20,150,000
0 9,010,061
0 11,139,939

272,814 11,426,250
210,540 8,936,729