IRS Tax Rule SHOCKS Investors: Write-Offs Explained! #shorts
14 Aug 2026 · 1 min
0:38
In this YouTube short, the speaker explains the IRS’s 39‑year straight‑line depreciation rule for commercial real‑estate purchases and how it limits annual tax write‑offs. Using a $3 million building as an example, he shows that the entire purchase price must be spread over 39 years, yielding roughly $150,000 of deductible depreciation each year. The speaker highlights the confusion investors face because the large purchase price is not fully deductible in the first year, prompting the question of how to account for the remaining $2.8‑$2.9 million of basis. The clip underscores the importance of cost‑segregation strategies and tax planning to bridge this deduction gap.
