Depreciable Improvements

In the software you are able to track depreciable improvements. There are two ways to accomplish this and both 

Tracking Depreciable Improvements

There are two ways to track depreciable improvements and the following instructions will walk you through both options. 

A. Mark an Expense as a Depreciable Improvement

In your Rentec Direct account: 

1. Click Properties
2. Right-click and choose Post Expense from the drop-down menu
3. After you have entered the details of the expense, click the Depreciate checkbox at the bottom
   
   

   

    
4. You will be presented with two new options. 
   
   1. Enter the Years the improvement is depreciated for 
      
      Examples: Rental Property  = 27.5 years / Appliances = 5 years 
      
      Important Note: Consult your tax advisor for details. 
   2. Enter the Begin date the improvement became serviceable. Typically this is the date the item began to be used for rental purposes
      
      Important Note: Consult your tax advisor for details. 
      
      
5. Click Post Expense when finished

B. Directly Create Depreciation Item on a Property

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. 

In your Rentec Direct account: 

1. Click Properties
2. Right-click on the property you wish to add an improvement or depreciable item to, and select Depreciation from the drop-down menu
3. From the Depreciation / Improvements page click the + Add Improvement button. 
4.  You will be presented with the following form. Enter the improvement:
   1. Description
   2. In-service date
   3. Depreciate Years
   4. Cost
   5. and Notes as needed
5. Click Save Changes when finished

Depreciation Reports

You can now run depreciation reports for all depreciable items entered in the system. 

In your Rentec Direct account: 

1. Click Reports
2. Under Financial Reports, choose the property and year you wish to report on
3. In the Tax Reporting section, choose the Depreciation Schedule report

Deleting Depreciable Expenses

To delete or edit a transaction that you have defined as depreciable, there are two steps required using these instructions.

1. Delete/edit the original entry from the property ledger 
   1. Click Properties
   2. Right-click and choose View Ledger from the drop-down menu (or click the ledger balance)
   3. From here, edit the original transaction, and then make changes or select Delete Transaction    
2. Delete/edit the item off your depreciation lists
   1. Click Properties
   2. Right-click on the property name and select Depreciation from the drop-down menu
   3. Find the item that was entered in as a depreciable expense, select Edit and adjust the entry or select Delete. 
      
      Note: Following these two steps will edit/remove the transaction from all Ledgers and the Depreciation list.