Chris Pierce
American singer-songwriter and producer
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Jul 21, 2026
Cost Segregation Leverages, Bonus Depreciation, and Tax Benefits from Depreciation
6:20
6:50
6:54
7:03
7:16
23:00

Chris PierceGUEST
Some people may not understand what that means and what that is, right? So, um, the depreciable basis on a property is essentially how much of that property you can depreciate over the lifespan of the ownership, whether it's the 27 and a half or 39 years, right? So, and, and when, when we're starting with that, the big thing with figuring out the depreciable basis is whatever your purchase price is on that property, the IRS doesn't let you depreciate the land.

Chris PierceGUEST
So we're always removing the land, which is why Sean was, was running that through with the calculation.

Chris PierceGUEST
Now, if you invest into that property too, you add capital expenditure into it, you- you're improving the property, then that gets added back on top for your depreciable basis.

Chris PierceGUEST
So, you know, in some of those examples, we were starting with, like, $300,000 property, uh, and then we're- uh, the land was at, I think you said 30,000, so we got down to 270,000.

Chris PierceGUEST
If you added another 270,000 into that whole property, we're now sitting at 540,000 depreciable basis.
16 MINS LATER

Sean GrahamGUEST
But as of right now, unless there's, you know, there, there is no end date, so it could theoretically be in place for, for the long, long term.