Which item is NOT typically used in the income approach?

The income approach to appraising property focuses on the property's potential to generate income. It is primarily used for investment properties where income production is a critical factor in determining value.

In this context, factors such as gross income, operating expenses, and vacancy rates are all essential components of this approach. Gross income represents the total revenue generated from the property before any expenses are deducted. Operating expenses are the costs associated with managing the property, and vacancy rates help account for the potential loss of income due to unoccupied rental spaces.

Accrued depreciation, on the other hand, relates to the reduction in value of a property over time due to wear and tear, market changes, or other factors. While depreciation is an important consideration in the overall appraisal process, it is not a direct factor in the income approach, which emphasizes current and future income generation rather than historical depreciation. Thus, this makes accrued depreciation the item that is not typically used in the income approach.