标题: Real Estate Investments [打印本页] 作者: Kapie 时间: 2011-7-13 13:10 标题: Real Estate Investments
Going thru AI again (been a few weeks) and I'm stuck on something silly..
Calculating the income tax payable
NOI - Depreciation (straight line) - Interest paid = taxable income
taxable income * tax rate = Income tax payable
In R47, pg 17-23 they give the Douglas Mannor example. My first question is why is Depreciation based only on the $451,000 of 'improvements' instead of the entire $525,000 cost. Second question is when you calculate the monthly mortgage payment (FV=0, PV= -393,750, N=12x30 I=8/12 --> CPT pmt you get 2889.20).. perfect. This is where the wheels are rusty..
The interest paid in fig 8. is $31,381 - how is that computed. I want to take mortgage outstanding * .08 which is [ 393,770*.08= $31,500 ] but I get a number slightly higher, as expected because the monthly compounding. How do i derive this number correctly? Will it be given?
Matt
Edited 1 time(s). Last edit at Tuesday, May 24, 2011 at 09:38PM by mbolzicco.作者: chandsingh 时间: 2011-7-13 13:10
i got another question on AI, hopefully i don't hijack your thread, but i would be curious to hear any responses.
Question: There are 0 EOC questions on Reading 47 (the CFAT/ERAT stuff). Anyone actually think this will be on the exam? Would seem kind of crazy to me for them to put a full item set on a property evaluation w/ zero EOC questions about it.作者: onelife1 时间: 2011-7-13 13:10
Looks like testable material to me...作者: thecfawannabe 时间: 2011-7-13 13:10
It's very testable, there is no EOC because the entire material is a workshop with the Douglas Mannor example starting on pg. 17.
Also think about Equities there was a whole reading on Michael Porter's Competitive Forces... no EOC. That too - will probably be tested simply on comprehension.作者: Sportsman 时间: 2011-7-13 13:10
you only depreciate the 'improvements' because the residual value (525K - 451K) is presumably land which you don't depreciate.作者: random_walker47 时间: 2011-7-13 13:10
*Interest expense has been determined from a loan amortization schedule. Because you
are not asked to construct an amortization table, this would either be given on the
exam, or the loan would be interest-only.
I found this on notes (pg.15). So, the interest will be given. (relieved...
