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SILVERVIEW ESTATES <br /> GENERAL PARTNERSHIP <br /> SUMMARY OF SIGNIFICANT ACCOUNTINPLICIES ANDYAND PR1OJ1C9ION ASSUMPTIONS <br /> FOR THE PERIOD COMMENCING2012 <br /> AND ENDING DECEMBER 31 , <br /> 1110 <br /> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued <br /> property and Depreciation <br /> Property and equipment are capittalizedfor pense , income tax purposes . <br /> Maintenance and repairs are charg <br /> The combined property' s Construction Costs are $7 , 133 ,585 . Finance, <br /> closing costs and other organization costs are projected at $257 , 000 . <br /> Capitalized land improvements are forecasted at $686 , 000 . <br /> The allocation between land, buildings and personal property is <br /> estimated as shown below. <br /> COMBINED PROJECTS <br /> Life �ost <br /> - $ ;79 , 000 <br /> Land 15 . 0 years y86 , 000 <br /> Land Improvements 27 .5 years 6 , 145 ,585 <br /> Building 7 . 0 years 109 ,000 <br /> Personal Property 30 . 0 years 222 ,000 <br /> Finance Costs 5 . 0 years 35 ,000 <br /> Organization Costs <br /> Illtder the Internal Revenue Code, a partnership may recover the cost of <br /> uepreciable real property under the Modified Accelerated Cost Recovery <br /> System (MACRS) . Under MACRS, depreciable residential real roperty <br /> d <br /> placed in service after December 31 , 1986 may Pre <br /> 27 . 5-year period using the straight-line method. The Code provides <br /> that depreciation of residential real property over a 27 . 5-year period <br /> and commercial real property <br /> over a 39 year period is subject to <br /> adjustment upon audit by the Service . However, the Service may <br /> len e the allocation of the cost between real property, personal <br /> property, and land. A successful <br /> affect nthe et timingsrtneand ramount of la <br /> for depreciation claimed wou <br /> Partner' s taxable income or loss . <br /> Depreciation of personal property placed in service after December 31, <br /> 1986 is computed over, a seven-year recovery period using the 200% <br /> declining balance method, switching to the straight-line method to <br /> maximize the deduction. <br /> that <br /> It should be noted that certain slaw may bes have not opted subs MACRS, <br /> nti ally dlower <br /> the depreciation allowed under state <br /> than the amounts reflected in the projection. <br /> SUMMARY OF SIGNIFICANT PROJECTION ASSUMPTIONS <br /> The accompanying financial projection assumptions for the period <br /> commencing January 1 , 1998 and ending December 31, 2012 is based on <br /> information provided by the General Partner ofof accounting the Partnership. <br /> Accruale <br /> projection is presented on the tax basis <br /> the projections . <br /> accounting methods have been used in preparing <br /> ( 3 ) <br />