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
=$ 37,000.00 (divided by 12 months) = $3,140.00+$1,000.00 Social Security
=$ 4,140.00 – Monthly Income
Donation of Apartment Building to MHCC as Gift Annuity
$1,000,000.00 – Proceeds
– Zero Taxes
=$1,000,000.00 – After Tax Proceeds X 6.5%
=$ 65,000.00 – Divided by 12 months
=$ 5,417.00 – Month
+$ 1,000.00 – Social Security
=$ 6,417.00 – Monthly Income
– $ 1,600.00 – Insurance Premium
– $ 4,817.00 – Disposable Income
| | ||||||||||||||||||
| Income before Mr. Gate's Death | $7,000.00 | |||||||||||||||||
| Income after Mr. Gate's Death | $2,000.00 | |||||||||||||||||
| Income if Apartment sold | $4,140.00 | |||||||||||||||||
|
| $4,817.00 | |||||||||||||||||
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