Lately I’m seeing a lot of investors get excited about cost segregation, bigger write-offs, and bonus depreciation.

That’s fine.

But here’s the question I think too many people skip:

Did you even get the land allocation right?

Because before you ever get to the sexy part of depreciation, you first have to separate the land from the building. And if that number is lazy, your depreciation is off from day one. The IRS is clear that land is not depreciable, and if the purchase includes both land and building, you have to allocate between them.

That matters a lot more than people think.

I see investors chase the big write-off and completely overlook the foundation underneath it.

Curious how others here are handling it.
Are most investors being too aggressive on land allocation, or are too many just guessing and hoping for the best?