# Financial assumptions

- Fictional acquisition price of $780,000 includes $180,000 of nondepreciable land; the $600,000 component basis is an illustrative allocation, not an appraisal, construction bid or tax conclusion.
- The example assumes 100% residential rental use, four 12-month dwelling-unit leases, and a calendar 2026 tax year. Dates are set to January 1, 2026 only to make the illustrative schedule computable.
- The fictional 1985 fourplex has four 1,080-square-foot townhome-style units on a 0.25-acre suburban lot. No real property, tenant, brand, photo or trade dress is depicted.
- Owner basis excludes tenant furniture, rugs, washers, dryers, patio chairs and carts. They appear only as staging where shown. Owner-supplied kitchen appliances and dedicated appliance circuits are separately listed.
- Carports are assumed to be a detached canopy on independent posts and footings. If attached, the illustrative schedule can change.
- The glued luxury vinyl plank is assumed permanently affixed; removable sheet vinyl, VCT, carpet and blinds are separately illustrated. Treatment depends on installation and documented facts.
- Landscaping is limited to planting assumed lost if the building were replaced; the general lawn is not depreciated.
- Price, land and component amounts are illustrative value allocations. No appraisal, cost study, engineering report or construction contract supports these figures.
- Bonus depreciation eligibility and treatment were not researched for this example. No bonus treatment or section 179 deduction is modeled. Taxpayer limits, elections and ADS are outside scope.
- Displayed depreciation is an illustrative deduction, not tax savings. Actual treatment depends on the facts documented in a study.