These assumptions are used to calculate the depreciation amounts shown in the Taxable Income Projection page
of the analysis. While depreciation is not a cash flow item, it is a deductible expense, and therefore affects the
tax amounts and both the Rate of Return and Net Present Value After Tax. Additionally, Depreciation Pages are
used to set up any amortization schedules and capital expenditures you want to plan. Depreciation is a multiple
page type, so you may include as many Depreciation Pages as you desire.
Practical entry walkthrough: title each Depreciation page descriptively (e.g. "Building"). Depreciable Amount:
any number less than 100 is treated as a percentage of the Price of Property — since only the building (not the
land) can be depreciated, this is typically entered as a percentage rather than a dollar amount. Example: an 80%
depreciable amount on a $10,000,000 property means $8,000,000 (the building) is depreciable and the
remaining 20% ($2,000,000, the land) is not. Depreciable Life: standard current values are 39 years for
commercial property and 27.5 years for residential property — always verify against current tax code since
these can change.
Add additional Depreciation pages — for separate building components, tenant improvements, capital
expenditures, or amortization schedules — via Edit / Add Depreciation Page. Each page tracks its own
depreciable amount, life, and method independently, allowing detailed tax basis tracking across multiple asset
components within one property.