Taxes & More Financing Flashcards

1
Q

How do you calculate a mortgage payment in excel?

A

=pmt(interest rate, #payments, Principal)

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2
Q

What is depreciation?

A

The accumulation of theatrical loss of asset due to deterioration.

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3
Q

What is book value?

A

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

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4
Q

What is the IRS schedule for building depreciation?

A

27.5 years

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5
Q

What is market value?

A

The current value of the asset (sellable price)

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6
Q

How is capital gains taxed?

A

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

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

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7
Q

How is recaptured depreciation taxed?

A

Accumulated Depreciation * 25% = Recapture Depreciation Tax

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8
Q

Whats passive loss carry forward?

A

Losses carried from one tax year to another.

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9
Q

How do you calculate NPV in excel?

A

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

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