![]() This sounds like a lot of stuff to cover in a page, but don’t worry because if you carefully structure your model it is not so bad. On this page I work through how to set-up the assumptions for a solar model with tax tax equity how to model cash flow and income at the partnership level how to measure hypothetical tax efficient cash flows how to compute distributions of cash flows to the partners how to measure distribution of partnership income to the partners how to incorporate project level debt and back leverage in the analysis how to measure constraints on tax benefits or stranded taxes from evaluation of the outside capital account (or tax basis) and how to evaluate the cash flows and tax effects from an option for the tax investor to sell his interest to the sponsor/developer. ![]() I will try and explain how the IRR to the tax investor is affected by the financing because of the way the allocation of debt to partners drives limits on taxable income I will try to explain when the deficit reduction account is important to the IRR and when it is not I will try and explain why the tax equity investor would prefer back leverage if there was no impact on tax limitations I will try and have you think about risks of cash flows to the tax investor and the sponsor/developer and I will try to explain the IRR and tax effects of the option of the tax investor to sell his interest to the sponsor/developer after the tax depreciation has been used. ![]() Hopefully, as I continue to work on this page I can not only explain the excel mechanics and the IRR effects of different tax, financing and operating items, but a bit on why the tax law as seemingly absurdly provisions. The tricky part of the calculations is evaluation of the potential that the tax equity tax benefits are limited because of rules associated with inside and outside capital accounts. ![]() ![]() The page includes a modelling case study that demonstrates how to work through the capital accounts (outside or tax basis capital account) and the inside capital account (fair market basis or just capital account). This web page walks through modeling of a partnership tax equity flip structure when the date for changing (flipping) partnership allocations of income and cash flow to the tax investor and the sponsor/developer are fixed. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |