Depreciation Explaination

Lost Value from Building Depreciation $500,000
Depreciation Awarded to Investor $100,000

Investor Personal Tax Stastement

Income $500,000
Depreciation -$100,000
Taxable Income $400,000

Investor Equity Payout

Asset Sale Price $3,000,000
Minus Purchase Price -$1,000,000
Profit $2,000,000
10% of Profit Paid to Investor $200,000
Return of Capital $100,000
Total Investor Payout $300,000

Property Profit and Loss Statement

Annual Cashflow $200,000
Expenses -$100,000
Net Operating Income $100,000
10% Paid to the Investor $10,000