Income before Mr

Income before Mr. Smith‘s Death Income after Mr. Smith‘s Death

$3,000.00 – Rental Income $3,000.00 – Rental Income

+$3,000.00 – Pension -$1,000.00 – Management Fee

+$1,000.00 – Social Security -$1,000.00 – Repairs

=$7,000.00 – Monthly Income =$1,000.00 – Net Rental Income

+$1,000.00 – Social Security

=$2,000.00 – Monthly Income

Income if Apartment Building is Sold

$1,000,000.00 – Proceeds

-$ 144,000.00 – Capital Gain @ 15%+9%X $600,000.00 tax

-$ 102,000.00 – Depreciated Recapture @ 25%+9%X $300,000.00 tax

=$ 754,000.00 – After Tax Proceeds X 5% Interest