Self storage- Year end tax planning

[Henry Clark]

Couldn’t keep up with my wife.  She’s out  doing more trips through the Munich Xmas marts.  I’m killing time in the foyer and bar area, decided to do a post.  

If you ever get to Munich stay at the Platzl Hotel.  Three blocks from the train station from the airport.  Two blocks off the main market areas.  Surrounded by Hofbrauhaus, Hard Rock Cafe, Ayinger Haus, and a lot of other Haus’s.  

Had several projects we wanted done so decided to do them before year end.  Whether we choose to do year one tax writeoff or not they are positioned.  Year one is phasing out and this year you can only take 80%, next year 60%, 40, 20.  

We never do anything just for taxes but they do play part of the decision process.  

Driveways, rebuild silt pond for subdivision, driveway entrance to reduce erosion, and Cargo containers for self storage.

Mainly you’re looking at assets with 15 year lives or less.   

Why take?  Mainly for cashflow in the near term to reduce taxes.  You will still end up paying taxes in the long run.   But usually you’re cash poor at the beginning of projects.

Why not take.  The subdivision driveways and silt pond we plan to sell the lots in the next 1 to 5 years.   Not worth the exercise.      
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How?   Normally you need to perform a cost segregation.  Since we managed as the GC these costs were individually billed and broken out, so no expertise necessary.  

Anyone up for some Wienerscnitzel?  Better spell check that.

[Henry Clark]

@Shafi Noss

Get on loopnet for your area.  Look at both commercial and industrial.  Pick a piece of dirt the nastier the better.  The longer listed the better. Don’t get hung up in doing a deal.  Contact me and let’s look at the possibilities.  Dont worry about dollar levels.  

For example you might find a 3 acre mud hole or a hill.  The mud hole you charge

People to dump snow during the winter and good fill dirt at other times.   It becomes valuable without little effort.  The hill you sell them fill dirt.  But the property becomes with more as it is flattened.  Lots of angles most people don’t see.  All they see is nasty.