1. About 95% of unit price is subject to depreciation
   
   
2. Losses not subject to passive activity rules if owner
   
   chooses to materially participate (common area is
   
   considered passive)
   
   
3. Owners are considered engaged in a trade or business.
   
   
4. Typical allocation of purchase price:
   
   • 70.34% to building
   
   • 24.01% to furniture & fixtures
   
   • 5.65% to land

• Yearly Association Assessments (for common area ownership)