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Unformatted text preview: 2005, the tax deprecation on this property is $20,000. The building generated $45,000 of rent during 2005. The property is financed by a $500,000 mortgage with a 25 year amortization period and a fixed mortgage rate of 6%. The mortgage was first taken out on January 1, 2005, (assume that Bill only makes one mortgage payment at the end of each year). The property incurred $8,000 of maintenance and repair expenses during 2005. REQUIRED : Calculate in the following order 1. The amount of interest paid on the mortgage during 2005. 2. The net rental income during 2005. 3. Taxes Owing (refund)...
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This note was uploaded on 11/13/2011 for the course CIVE 2*** taught by Professor - during the Spring '11 term at Carleton CA.
- Spring '11