Owner Tax Calculation
One of the model assumptions is that the developer's ownership is in the form of a pass-through entity (i.e., S-Corp, LLC). As such the entity is not taxed, but project income flows through to the owner personally and is taxed at his or her marginal tax rate. If multiple owners are involved with the project, each one is taxed at his or her marginal rate under his or her filing status.
To estimate tax liability, the owner simply enters his or her percentage ownership in the project and tax filing status on lines 53 and 54 of the LDM input page - 40 percent and married filing jointly in the case of the sample project. The project's annual profit before tax is multiplied by the percentage ownership and is displayed on the owner tax calculation table as the individual owner's profit before tax. Those annual line items are subjected to the tax rate table and tax liability is calculated.
The pages of the model are password protected at the time of delivery to ensure that inadvertent changes are not made to the model. The only password you need to know is for the owner tax page so you can update the tax tables from time to time. That password is "password" (case sensitive). When changes are necessary, go to 'Tools' > 'Protection' > 'Unprotect Sheet' > type "password" , and make changes to the tax rate table. Do not make changes to any part of the owner tax calculation table. When you are done, go to 'Tools' > 'Protection' > 'Protect Sheet' > type "password", or change the password if you like, but write it down and keep it somewhere safe. In the event the number of tax brackets change and formulas need to be modified, we will do it for you and send an updated file.
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Profit By Phase
Profit, Cash Flow, Project Summary Tables & Lot Sale Schedule
Cash Inflow & Loan Reduction
LDM Input Page
Land Development Model, LLC
302 West Lafayette Road
Medina, OH 44256