Property Address:
123 Main Street, San Francisco, CA 94931

Assets Separation Depreciation Comparison		Tax Deferred
Additional Depreciation 2006-2010: $24,649 Total Asset Separation Depreciation Total Straight Line Depreciation		Total Tax Deferred 2006-2010: $10,920 Assume 35% Federal and 9.3% State Rates

Depreciation WITHOUT Asset Separation			Depreciation WITH Asset Separation
Depreciation Life Category	27.5 Year		5 Year	15 Year	27.5 Year	Total Depreciation
% of Improvements Total Value Depreciated	100% $179,000		15% $28,065	9% $16,600	75% $134,335
Year 1 Depreciation Amount	$6,238		$5,613	$830	$4,681	$11,124
Year 2 Depreciation Amount	$6,509		$8,981	$1,577	$4,885	$15,443
Year 3 Depreciation Amount	$6,509		$5,388	$1,419	$4,885	$11,693
Year 4 Depreciation Amount	$6,509		$3,233	$1,277	$4,885	$9,395
Year 5 Depreciation Amount	$6,509		$3,233	$1,150	$4,885	$9,268
Total	$32,274		Total Depreciation with Asset Separation:			$56,923

Short Life Property Assets

Asset Name	Service Date	Asset Life	Asset Value	Depreciation Method	Depreciation Amount
Blinds and/or Curtains and/or Drapes	01/15/2006	5 year	$3,200	200DB HY	$640
Carpets (tacked down not glued)	01/15/2006	5 year	$7,800	200DB HY	$1,560
Dishwashers	01/15/2006	5 year	$475	200DB HY	$95
Garbage Disposal	01/15/2006	5 year	$275	200DB HY	$55
Kitchen Ranges	01/15/2006	5 year	$800	200DB HY	$160
Microwave Ovens	01/15/2006	5 year	$400	200DB HY	$80
Ovens	01/15/2006	5 year	$1,200	200DB HY	$240
Heat Pump & Central Cooling	01/15/2006	5 year	$3,500	200DB HY	$700
Pers Prop - Assets	01/15/2006	5 year	$5,255	200DB HY	$1,051
Vinyl Floor	01/15/2006	5 year	$2,720	200DB HY	$544
Tiles - Ceramic	01/15/2006	5 year	$2,440	200DB HY	$488
Total Asset Value:  $28,065				Total Depreciation:  $5,613

Land Improvements

Asset Name	Service Date	Asset Life	Asset Value	Depreciation Method	Depreciation Amount
Fences - Permanent	01/15/2006	15 year	$3,200	150DB HY	$160
Landscaping (Shrubbery, Trees, Lawn and Plants)	01/15/2006	15 year	$2,500	150DB HY	$125
Patio	01/15/2006	15 year	$4,700	150DB HY	$235
Sidewalk	01/15/2006	15 year	$2,000	150DB HY	$100
Sprinkler System	01/15/2006	15 year	$4,200	150DB HY	$210
Total Asset Value:  $16,600				Total Depreciation:  $830

Building (27.5 years)

Asset Name	Service Date	Asset Life	Asset Value	Depreciation Method	Depreciation Amount
Building	01/15/2006	27.5 year	$134,335	S/L MM	$4,681
Total Asset Value:  $134,335				Total Depreciation:  $4,681