Tommy Dobczyk shows how a $1.6 million building purchase breaks down into depreciable components: lights, carpet, furniture, car lifts. A cost segregation study itemizes each asset so you claim depreciation deductions on the whole purchase price, not just the structure itself.
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.
