What is the purpose of the lower section on the Inc form?
The bottom section of the Inc screen provides information for depreciation calculations, and are reflected in the property’s Income stream. Since land value cannot be depreciated, building value, land improvement value (such as hardscapes and site infrastructure), and personal property value are input as components of the purchased property. The sum of these depreciable assets must be less than the overall purchase value of the property. The difference between the overall purchase value of the property and the depreciable assets is the calculated land value. The depreciation period is determined by the type of asset, as well as whether it is a residential or commercial property. Capital Improvements begin depreciation in the year of their installation, and are deprecated as a structure.
