The notice also "provides guidance regarding the appropriate
present value factors to be used for purposes of determining the basis recovery fraction of each payment received during phased retirement and provides guidance regarding the time for determining the basis recovery fraction for these phased retirement payments.
This includes, but not limited to, mortality tables,
present value factors, and survivor benefit factors.
The number of present value factors incorporated in the formula depends upon the number of years the taxpayer believes will be necessary to fully recover the carryover interest deductions.
But if the taxpayer expects that it will be three years before the interest expense carryover can be deducted, the right side of the above equations could be modified to solve for a present value factor that could be used to determine the required interest rate.
Where BSP is the necessary breakeven sales price of the stock, PV is the present value factor of cost of capital for five years, SP is the current selling price of the stock, and AB is the adjusted basis of the stock.
If MP discounting is, in fact, the best fit for a particular property type in terms of computing present value factors to apply to NOL it follows that values derived by BOP discounting and EOP discounting are both inaccurate to the extreme.
Within the process of income valuation analysis, the appraiser must select the frequency of compounding of interest in order to compute present value factors for income capitalization and discounting.
This is accomplished by discounting each after-tax cash flow through the use of
present value factors reflective of the age of the cash flow.
Derive
Present Value Factors Based On Payout Patterns And At An Assumed Rate Of Interest.
Apply the net
present value factors to the total enhanced earnings to determine the estimated present value of the enhanced earnings associated with the CPA license.
