Tommy Dobczyk explains a two-phase depreciation strategy for luxury properties: do a cost segregation study at purchase to maximize first-year deductions, then renovate and file another study the next year to capture additional depreciation. They used AI to generate the inventory.
Chapters
Mark, yeah. So to your point, what you were discussing, we— what we did was we pulled up a luxury, luxury property that, that we looked at and we were like, okay, what's the best way to go through this? And basically what we discovered was there's a 2-way strategy here. When we buy the luxury property, we're going to do a cost— we're going to do a cost segregation study on everything in the house and get full depreciation year 1, all that. Right now. And then after the end of the year, coming into the next fiscal year, we're going to fix everything up. We're going to tear out a lot of stuff, put new stuff in. Is that— is that a strategy? Strategy that's— that's understandable and viable by you guys?
Yeah, we love that strategy because you kind of get 2 swings at the bat, right? You get the cost segregation study based on the property as you acquired it. And in those, you know, a property like this, is this a home? What is this?
And all this information came in off of our AI. So what we did was we factored in a real house, but then tied into it some of the, some of the other stuff. So, okay, cool. And so we went through it and just gave it some, some information. And it— and, and gave it like an inventory. Um, so, uh, we explained the 2-phase cost strategy, which is the acquisition study and then doing a renovation expansion study, which is the 2-part play, right? And so in phase 1, we did the interior categories of cabinetry, flooring, lighting, appliances, built-ins, millworking,
