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ProCash, an Economic Model for Income Properties

Depreciation

In the simplified use of ProCash© depreciation schedules and tax credits are automatically created in accord with current tax law.

If the user wishes to override the ProCash© conventions, then the inputs DEP, TAXCR, and columns 7-10 of CM may be used.

DEP is a matrix of either 3 or 4 rows and any number of columns. The columns are various depreciation schedules.

Depreciation bases can be input as a single schedule or on a component basis either as a percentage factor or as a dollar amount. For existing projects, depreciation to date is acknowledged. Any rate of accelerated or straight line depreciation is allowed with the exception of the sum of the year's digits method. Depreciation schedules can start part way through a period, with appropriate adjustments to that and all following periods. The depreciation of capital improvements is assumed to be midperiod. Each accelerated schedule automatically switches to the straight line method at the optimum point. Provision is made for amortization of fees or organizational expenses.

Depreciation of capital improvements is specified with MV[23] as term in years and MV[24] as the rate (zero means ACRS). In the simplified use of ProCash©, capital improvements are depreciated on the same basis as the building structure with the additional assumption that the capital improvement is put in service in the 7th month (assuming an annual projection). If MV[23] and MV[24] are given the value zero, then no depreciation of capital improvements will be taken.

inputdescriptionhelp#importancefrequency
AVI[150]Term Over Which to Depreciate Capital Improvements 730  3
AVI[151]Depreciation Rate Capital Improvements (0 if ACRS) 730  3
CM[;7]Const. budget: Depreciation or amortization term 730  2
CM[;8]Const. budget: Depreciation or amortization rate 730  2
DEP[1;]Depreciation schedules: Amount (or Pct of Dep.Base) 730  2
DEP[2;]Depreciation schedules: Term (years) 730  2
DEP[3;]Depreciation schedules: Rate (e.g. 2,1.5,1)(0 If ACRS) 730  2
DEP[4;]Depreciation schedules: Depreciation Already Taken 730  1
AVI[176]Rate to Escalate Basis for CCRS Dep. (0=not CCRS) 730  
AVI[194]Experimental:depreciate & inc. for LIHTC land dev. & F&E 730  

viewtypecase studyviewfile sizecomplexityhelp#comment
InputsABCO Joint Venture (office)(depreciation) 2834 6 730probably not needed, default assumption should suffice
Belle Glade 72 Units Deal A(depreciation) 4260 59 730 
601 Liberty St. (office)(depreciation) 4184 66 730 
601 Liberty St., Hotel Joint Venture(depreciation) 3716 71 730 
Brandon Villas of Tampa (market housing)(depreciation) 4204 82 730 
Shelter School Renovation (L&H)(depreciation) 4309 94 730 
OutputsABCO Joint Venture (office)(depreciation schedules) 5942 211 730 
Tax Credits for Low Income Housing, 11th Edition(depreciation schedules) 5817 243 730 
St. Lucie Warehouse(depreciation schedules) 6696 288 730 
Spring Valley Hotel(depreciation schedules) 5599 299 730 
601 Liberty St. (office)(depreciation schedules) 6274 338 730 
601 Liberty St., Hotel Joint Venture(depreciation schedules) 6664 359 730 
Belle Glade 72 Units Deal A(depreciation schedules) 5936 364 730 
Mixed Use Development (Scenario 2-A)(depreciation schedules) 6358 377 730 
Tower Point Apartments (demo)(depreciation schedules) 6400 384 730 
Brandon Villas of Tampa (market housing)(depreciation schedules) 5497 402 730 
Executive Plaza (Pre-Const., office)(depreciation schedules) 6011 403 730 
Executive Plaza (Under Const., office)(depreciation schedules) 6016 403 730 
Turnkey Syndication : LIHTC(depreciation schedules) 7288 458 730 
Conv. 9% FAHP 3% 25 Years: 13 Areas (housing)(depreciation schedules) 7276 458 730 
Shopping Center Illustration(depreciation schedules) 7815 516 730 
Demo Mixed Use Facility(depreciation schedules) 6729 550 730 
Windsong Housing Associates : LIHTC(depreciation schedules) 7713 553 730 
Shelter School Renovation (L&H)(depreciation schedules) 7706 565 730 
Tower Point Apartments (detail)(depreciation schedules) 8361 590 730 
BHP II Limited Partnership : LIHTC(depreciation schedules) 10311 853 730 

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