Sample Comparison
Outright Sale vs. the Pepperdine 664 Exchange*
| INCOME | OUTRIGHT SALE | PEPPERDINE SALE |
| 1. Net Sales Proceeds | $5,000,000 | $5,000,000 |
| 2. Less: Tax Basis | $100,000 | n/a |
| 3. Net Long Term Capital Gain (1-2) | $4,900,000 | None |
| 4. Blended Federal/State LTCG tax Rate | x36% | n/a |
| 5. Federal/State LTCG Taxes (3x4) | $1,764,000 | None |
| 6. Net After-Tax Proceeds (1-5) | $3,236,000 | $5,000,000 |
| 7. Pre-Tax Earnings/Annuity Rate | x6% | x6% |
| 8. Pre-Tax Return (6x7) | $194,160 | $300,000 |
| 9. Federal/State Income Taxes(@46%) | ($89,136) | ($138,000) |
| 10. After Tax Earnings | $105,024 | $162,000 |
| Income Tax Deduction | ||
| 11. Income Tax Contribution Deduction | None | $1,712,960 |
| 12. Total Cash Savings From Deduction (11x46%) | None | $787,962 |
| 13. Annual Cash Savings for 6 years (12x1/6) | None | $131,327 |
| Total Benefits | ||
| 14. Yearly After-Tax Income | ||
| Years 1-6 (10+13) | $105,024 | $293,327 |
| Years 7+ (10) | $105,024 | $162,000 |
3620 Wyoming Blvd. NE, Suite L-11, Albuquerque, NM 87111
Phone (505) 346-1560 * Fax (505) 346-1561 * Toll Free (800) 684-6531 (Outside Albuquerque)