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Updated about 1 year ago, 12/19/2023
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Self storage- Year end tax planning
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.