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