HP 12C manual After-Tax Net Cash Proceeds of Resale

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175200		2
40296	3		40,296.00		1st year operating cost.
1200000		4	1,200,000.00		Depreciable value.
35	5		35.00		Depreciable life.
50	7		50.00		Marginal tax rate.
3.5	8		3.50		Potential Gross Income
1.6	9		1.60		Operating cost growth rate.
7	0		7.00		Vacancy rate.
	31		7.00		Go to dep. step.
			32-	42	Change to SL.
			23
			1.00		Year 1
			18,021.07		ATCF1
			2.00		Year 2
			20,014.26		ATCF2
			3.00		Year 3
			22,048.90		ATCF3
			4.00		Year 4
			24,123.14		ATCF4
			5.00		Year 5
			26,234.69		ATCF5

After-Tax Net Cash Proceeds of Resale

The After-Tax Net Cash Proceeds of Resale (ATNCPR) is the after-tax reversion to equity; generally, the estimated resale price of the property less commissions, outstanding debt and any tax claim.

The After-Tax Net Cash Proceeds can be found using the HP-12C program which follows. In calculating the owner's income tax liability on resale, this program assumes that the owner elects to have his capital gain taxed at 40% of his Marginal Tax Rate. This assumption is in accordance with a 1978 Federal tax ruling.* (*Federal Taxes, code sec. 1202 (32,036))

This program uses declining balance depreciation to find the amount of depreciation from purchase to sale. This amount is used to determine the excess depreciation (which is equal to the amount of actual depreciation minus the amount of the straight line depreciation).

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