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.