I'm working on a case study for an apartment complex. There is a loss on sale in the first 4 years and then a small gain on year 5. The case study analysis shows an increase in sale proceeds after-tax, meaning there was a gain in federal tax on sale. Is this a mistake? How is it possible for the after-tax sale proceeds to be greater than the before sale proceeds? I'm not really sure how this works.
Your case study does not make sense.
How do you have a sale in the first 4 years? A sale occurs one time per property.
"There is a loss on sale n the first 4 years"
What is "after-tax sale proceeds"
what is "before sale proceeds"
You should give an example with numbers and that may help.