DISCLAIMER: This illustration is provisional only and is provided and intended to be used for

general educational and informational purposes only. It is furnished with the understanding

that the CB Administrative Services LLC as authors and publishers are not engaged in rendering

legal, accounting, investment, tax, or other professional advice and/or services.

Before making any decision, you should seek the advice of a qualified professional before proceeding. The

amount(s) payable to you which is reflected in this IST illustration is based on interest rates,

formulas and other factors provided by federal tax law and the IRS. No representation is made

that the payment amount is guaranteed for the rest of your life. This scenario makes certain

assumptions in order to illustrate the important aspects of this transaction. There may also be

additional considerations not accounted for in this example that may further affect whether

this is appropriate for you. Prior to engaging in this transaction, it is necessary that you review

your tax situation with your tax advisor to determine if this transaction is right for you.

The publication of this material is designed for informational purposes only in regard to the

subject matter covered. The material provided does not constitute an offer to sell or a

solicitation of an offer to buy any security. Any such offer may only be made based on review of

client's individual financial situation upon request.

a. For purposes of this illustration, if you reside in one state and your IST property is located

in another state, it is assumed that you will pay tax on the taxable capital gain in the

state in which the property is located, and you will pay tax on the interest earned on the

IST note in the state in which you reside. Your actual taxes will be determined by your

CPA or tax preparer at the time your tax returns are prepared.

b. These taxes represent the tax on the mortgage in excess of basis. They are part of the

capital gains liability but cannot be deferred by the IST; however, they can be reduced or

eliminated by paying all or a portion of the mortgage prior to the sale. For this

illustration, it is assumed that the taxes on mortgage in excess of basis are paid from IST

funds.

c. If there is a Mortgage Over Basis, the capital gain and depreciation recapture in that

amount are generally not deferrable. This illustration calculates a total MOB based on

input data and may reflect a higher MOB number. In some cases, there may be

opportunities to restructure to reduce MOB.

d. Recapture tax on depreciation in excess of "straight line" is not deferrable and is not

reflected here unless imputed in data submission. Straight line depreciation on real

property lowers the basis. The resulting increase in gain is deferrable.

e. These calculations may not consider Sect. 1250 recapture if applicable, nor tax on the

interest income for either with or without IST.

f. Transfer taxes not included but would apply equally to sales with or without using IST.

g. If you are eligible for all or part of the one-time capital gains exemption and wish to take

the exemption with this sale, please contact us to find out how it will impact these

calculations.

h. Your right to receive the money will be from a trust in which the proceeds from the sale

are reinvested in ways which may involve more or less risk, including fluctuating returns

and possible loss of principal, depending on where the proceeds are reinvested.

i. These are assumed rates. Final rate will be determined when you prepare your income

taxes.

j. This illustration is interest only. Amortized options are available. It is assumed that when

using an IST, no funds are retained by seller & net proceeds go into the IST.