Arthur and others discuss cost segregation, a tax strategy that lets you write off up to $2 million in a single year on real estate projects that went online recently. The technique accelerates depreciation deductions by breaking down property costs into smaller components.
This project went online this year so the cost segregation savings will be on this calendar year.
What was the total project cost and what were you able to depreciate with the cost?
Seg about 15 million where.
Between 15 to 25% could be reallocated here, probably on the heavier side because you do have nice amenities. It's not structural is going to be eligible for a faster write off. So things like these walls that don't go all the way up and doors and items that come along with it that are just supporting the business will be eligible to go into a faster life. This is going to be a real nice outcome for Arthur and his investors.
About $4 million can be written off against investors and Arthur's taxes as that's what the cost study helps you do. You're at a almost call it 50% tax bracket. That's a $2 million approximate tax saving of the year. One that it's put into service.