What's up everybody? Welcome back to this week's segment of the no limit minute. I wanted to just take today to dive a little bit deeper, peel back the layers of what a cost segregation study actually is. Now for those of you out there that know what this is already, you're probably just wanting to

bypass this episode. you may not have even

started listening to this episode in the first place but there are going to be some nuances that you may not

know about cost segregation.

I really just wanted to peel back the layers,

make sure we're all fully comprehending

and understanding what it is

and how it can potentially benefit you.

So a cost segregation study in and of itself

is fairly straightforward.

What it is, if we look at the standard life cycle

of depreciation on a real estate asset,

then if we've got a residential property, it's going to be 27 and a half years, and if we've got a commercial property, it's going to be 39 years.

So let's just say we've got a residential property. 27 and a half year life cycle, everything at that asset

that can potentially be depreciated.

There's sheet rock, the wiring, the floors,

the kitchen cabinets, countertops, the sink, the ceiling fans, the light fixtures, the parking lots, everything can be depreciated, the roof, the siding, the HVAC unit, the condenser lines, everything is going to have a depreciable life cycle.

And if we were just to keep it at our standard level of depreciation, then we would take all of that, whatever that final number is, whatever the assessed value is, and we would divide that by 27.5, and then that would equate to be what each year's worth of depreciation would be that we would potentially receive.

That's fine, there's benefit in that, right?

You're still getting depreciation, you didn't have to do any work for it other than acquire the asset.

But what a cost segregation study is, is that it's going to accelerate the depreciation of all of those assets at a much more rapid pace.

So what cost segregation is going to do,

...