Small Residential Projects 1
California
Highlights
ESTIMATED TOTAL TAX SAVINGS
$254,832
ESTIMATED TOTAL REVENUE
$7,500
ESTIMATED TOTAL RETURN
$262,332
The total return on your purchase in this project from tax credits, ordinary depreciation, bonus depreciation, and revenue share.
ROI ⓘ
1.75x
This represents an estimated 1.75x return on capital
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Description
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Commodo eros. Nulla id est vel nulla pulvinar commodo at a sapien. Proin quis convallis lacus. Vivamus sed magna augue. Etiam nibh est, varius quis lorem eget, eleifend ornare urna. Proin vitae laoreet est. Aenean malesuada vulputate augue, at consequat nibh congue eget. Donec ac sapien at elit congue suscipit a sit amet justo. Fusce vehicula, odio eu dictum dignissim, turpis est fermentum ipsum, a lacinia elit diam sed leo. Mauris aliquam erat ut urna posuere, at scelerisque risus vehicula.
Location
Summary
Deal Terms
Purchase amount $150,000
Project value $310,000
Flexibility in
purchase amount No
Ownership
structure Flip partnership
Availability Available
Payment
structure
50% down, 50%
upon completion
Eligibillity for H1B
holders Not eligible
Federal Investment Tax Credit $122,760 This project earns a $122,760 tax credit
Savings from Federal Depreciation $90,842 You will be eligible for $90,842 from federal depreciation
Savings from State Depreciation $41,230 You will be eligible for $41,230 from state depreciation
Project Income $7,500 You could earn $7,500 in total income from your ownership in this project
Total Returns $262,332 You could earn $262,332 in total returns from your purchase
Inputs
Purchase Amount $150,000 The minimum purchase for this project $150,000. The numbers herein assume that you purchased the minimum
Federal margin Tax Rate 37.00% Based on your taxable income, we have estimated your federal rate to be 37.00%
State Marginal Tax Rate 13.30% Based on your taxable income, we have estimated your federal rate to be 13.30% ( calculated base on California tax rates)
Tax Credits
Investment Tax credit Rate 40% The minimum purchase for this project $150,000. The numbers herein assume that you purchased the minimum
Year 1 ITC $122,760 This is the tax credit you will receive in year 1
Additional ITC $0 This is the tax credit that will carry over to year 2, if any
Total Investment Tax Credits for Project $122,760 You will receive all of your credits as a reduction on your taxes in the year you invest
Depreciation
Total federal depreciation deduction $245,520
Total state depreciation deduction $306,900
Year 1 federal depreciation tax savings $90,842
Year 2-5 federal depreciation tax savings $0
Year 1 state depreciation tax savings $8,164
Year 2-5 state depreciation tax savings $32,654
Total depreciation savings for project $132,072
The total depreciation you will be allowed to deduct from your income on your federal taxes over 5 years. You may take 100% of this deduction in year 1 and 5% in each of the next 4 years.
The total depreciation you will be allowed to deduct from your income on your federal taxes over 5 years. You may take one-fifth of this deduction each year.
The total depreciation you will be allowed to deduct from your income on your federal taxes over 5 years. You may take one-fifth of this deduction each year.
The total depreciation you will be allowed to deduct from your income on your federal taxes over 5 years. You may take one-fifth of this deduction each year.
The amount you will save on your state taxes as a result of your first-year depreciation deduction.
The amount you will save on your state taxes as a result of your remaining depreciation deduction.
The total amount you will save on your taxes over the first 5 years from depreciation deduction.
Cash Flow
Project Annual Cash Flow Rate 1% In most project contracts, the buyer is entitled to preferred 1% return on cash flow for the first five years
Annual Cash flow $1,500 Your revenue share times your purchase
Cash Flow Time Horizon 5 Years By contract, this project will return revenue for 5 years
Total Project Cash Flow $7,500 This is the pre-tax revenue share from the project