Taxes & More Financing

Question 1

How do you calculate a mortgage payment in excel?

Answer 1

=pmt(interest rate, #payments, Principal)

Question 2

What is depreciation?

Answer 2

The accumulation of theatrical loss of asset due to deterioration.

Question 3

What is book value?

Answer 3

book value (accounting value) = purchase price- accumulated depreciation

Question 4

What is the IRS schedule for building depreciation?

Answer 4

27.5 years

Question 5

What is market value?

Answer 5

The current value of the asset (sellable price)

Question 6

How is capital gains taxed?

Answer 6

Sold Price - Cost Basis (purchase price) = capital gain

capital gain * 15% (IRS) = Capital Gains Tax

Question 7

How is recaptured depreciation taxed?

Answer 7

Accumulated Depreciation * 25% = Recapture Depreciation Tax

Question 8

Whats passive loss carry forward?

Answer 8

Losses carried from one tax year to another.

Question 9

How do you calculate NPV in excel?

Answer 9

=npv(rate, value 1, value 2, value 3)