Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

Unlock Building Tax Write-Offs: The Cost Segregation Secret REVEALED! #shorts

14 Aug 2026 · 1 min

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1:07

In this short dialogue, Speaker A explains the cost segregation tax strategy for a $1.6 million building purchase. By breaking down the purchase price into individual assets—lights, carpet, LVT flooring, shades, drapes, chairs, desks, car lifts, etc.—the owner can list each item as an inventory item on the tax return and claim depreciation deductions for each, effectively writing off the entire purchase amount. Speaker B asks a clarifying question about how those assets are paid for, and Speaker A confirms that the $1.6 million down payment covers the building and all its components, which are then allocated for tax deductions via a cost segregation study.

Chapters

No, it's not proof. What it is that the $1.6 million bought the building and then you got to write off everything in it. But the case study is helping us find those things. Right. And then what you do is when you file your taxes, you're telling the IRS that you didn't just buy a building. You bought a building that has lights, carpet, LVT, shades, drapes, chairs, desks, car lifts. You're telling them you're going to list everything that you have in the building, like an inventory. And then you're going to put the deduction next to that, what you want to get as your deduction, all the way up to the point of $1.6 million. What's your question?
No, that was so— it was just very silly of me because I, like, in my brain, I just realized though, so you're not paying for— because when Cicely asked like, how are all those things like flooring, lights, windows, cars being paid for? I was like, how are they being paid for? But the $1.6 million is the down payment for the building that already has those things.
Correct.
And then the only reason that we're doing that tax segregation study is to determine how much of the $1.6 million that we already paid gets written off. Okay, I understand.