Depreciable Improvements

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There are two ways to accomplish this.

First, when you enter an expense for a property, you are presented with an option you can select of ‘This is a depreciable improvement’. This will present you with two new options. Enter the date the improvement began to be used for rental purposes in the Begin on entry. Then enter the years you wish to depreciate the item.

Second, you can add and track depreciable improvements without entering an expense. For instance, you may want to track the depreciation of the building itself, without posting a debit entry for the value of the building. Do this using the following steps:

1. Open the Properties tab. Right-click on the property you wish to add an improvement or depreciable item to, and select Depreciation.

2. From the depreciation listing, select in the lower-left ‘Add new improvement’. You will be presented with the following form. Enter the improvement description, in-service date, years to depreciate, cost, and notes.

You can now run depreciation reports from the Reports tab. Choose the property and year you wish to report on, then select the report labelled ‘Depreciation Schedule’.

**DELETING DEPRECIABLE EXPENSES:   To delete or edit a transaction that you have defined as depreciable, there are two steps required.   First,   delete/edit the original entry from the property ledger by clicking on Property and then the ledger balance.  From here, edit the original transaction, and then make changes  or select “delete Transaction.”    Second,  to delete/edit  your depreciation lists, you will want to head to the Property tab, right click on the property name, and select “Depreciation.”  Find the item that was entered in as a depreciable expense, select edit and from here, adjust the entry or select delete.  Following these two steps will edit/remove the transaction in both the ledger and the Depreciation list.