I currently have 12 units consisting of 8 properties and the amount of inventory/equipment I am maintaining for the properties is starting to stack up. I am flirting with the idea of building a garage at my primary residence to house my remodeling supplies and my pieces of equipment - tractor/lawnmowers/chainsaws etc. This will also be used a small amount for my personal needs for storage. My question is can my LLC pay for this garage on my property and can I depreciate it for my LLC useage?
It seems like it should be OK. You would most likely have to keep it as part of your personal residence and rent it to the LLC or something like that. Your CPA would know the correct answer to this.
I would look to see what percentage of the garage you use for the storage of your business equipment and what percentage that you use for personal items.
I would then only depreciate the percentage related to busines equipment.
Are all the properties under 1 LLC or multiple LLC's?
if it is under multiple LLC's - you may want to pay for the garage through your personal name and then have each LLC reimburse you for the cost of the garage.
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