The Benefits of Cost-Egg

A roof is always a long-term asset. It's just when we do our cost-egg study, you buy a million-dollar multifamily and we say, okay, the roof is worth 100,000. Well, let's say you own that roof for half of its useful life. That roof after 13 and a half years, it still has half of its book value left. And so when you put the new roof on, that old roof, whatever that value of that old roof is, you get to write that off as an expense in the current year. Even though because you're retiring that equipment or retiring that roof, so you don't get to depreciate it