HP 12c Platinum Reference Manual page 22

22 Real Estate
2. Key in the loan values:
•
Key in annual interest rate and press gC.
•
Key in mortgage amount and press $.
•
Key in monthly payment and press ÞP.
(If any of the values are unknown, they should be solved for and if one has
to be solved for then the correct payment mode needs to be set)
3.
Key in depreciable value and press ?3.
4.
Key in depreciable life in years and press ?4.
5. Key in accelerated depreciation factor for the declining balance method and press
?5.
6. Key in your Marginal Tax Rate as a percentage and press ?6.
7. Key in the Capital Gains Tax Rate as a percentage and press ?7.
8. Key in the purchase price and press \(³).
9. Key in the sale price and press \(³).
10. Key in the % commission charged on the sale and press \(³).
RPN: If a dollar value is desired instead of a commission rate, key in gÂ,
which does not affect the register values, at line 005 of the program.
ALG: If a dollar value is desired instead of a commission rate, key in gÂ,
which does not affect the register values, at line 008 of the program.
11. Key in the number of years after purchase and press t. The ATNCPR is
displayed.
12.
To see the NCPR press :0 and to see the tax due press :1.
Example 1: An apartment complex, purchased for $900,000 ten years ago, is sold for
$1,750,000. The closing cost is 8% of the sale price, the income tax rate is 48% and the
capital gains tax rate is 19.2%.
A $700,000 loan for 20 years at 9.5% annual interest was used to purchase the complex.
When it was purchased the depreciable value was $750,000 with a useful life of 25 years.
Using 125% declining balance depreciation, what are the After-Tax Net Cash Proceeds in
year 10?
12c platinum / 12C
RPN Keystrokes
gÂ
fCLEARH
700000$
9.5gC
20gA
P
750000?3
12c platinum
ALG Keystrokes
gÂ
fCLEARH
700000$
9.5gC
20gA
PP
750000?3
Display
0.00
Mortgage.
700,000.00
Monthly interest.
0.79
Number of
240.00
payments.
Monthly payment.
-6,524.92
Depreciable value.
750,000.00
Comments