Income Tax Advantages

[Joswhaha]

Howdy yall,
I did a search but didn’t find much information on the topic of tax benefits or strategies. BY THE WAY, I don’t mean keeping a barrel of quarters hidden and not reporting any income.

I currently have a small construction business and about 15 rental properties. So I am aware of the legal tax advantages of owning real estate but didn’t know if there are strategies directly associated with car washes.

One thought, keep the real estate and business separate. The business can rent the property from your other company and this could save some self employment tax on the rental income depending on your specific circumstances.

I could see there being significant equipment depreciation yearly but I didn’t know if there are any popular strategies for this industry. I will ask my CPA and post here what he knows.

 

[traveler17]

Howdy yall,
I did a search but didn’t find much information on the topic of tax benefits or strategies. BY THE WAY, I don’t mean keeping a barrel of quarters hidden and not reporting any income.

I currently have a small construction business and about 15 rental properties. So I am aware of the legal tax advantages of owning real estate but didn’t know if there are strategies directly associated with car washes.

One thought, keep the real estate and business separate. The business can rent the property from your other company and this could save some self employment tax on the rental income depending on your specific circumstances.

I could see there being significant equipment depreciation yearly but I didn’t know if there are any popular strategies for this industry. I will ask my CPA and post here what he knows.

I like this topic. Would like to hear others creative ways that they or their CPA suggest. I do know a gentleman that owns 5 SS washes and has the real estate under a LLC and the business is owned by S Corp and pays the LLC rent. These Are the types of ideas I like hearing about. I close on my 2nd wash Monday and going to talk to attorney/CPA about this.

 

[soonermajic]

Great topic

 

[MC3033]

Bonus depreciation (100%) is the best feature right now. If acquiring an existing wash generally a large portion can be allocated towards equipment and building for depreciation.

 

[soonermajic]

Bonus depreciation (100%) is the best feature right now. If acquiring an existing wash generally a large portion can be allocated towards equipment and building for depreciation.

Splain this so a COACH can understand please

 

[MEP001]

Bonus Depreciation: A Simple Guide for Businesses | Bench Accounting

Bonus depreciation can deliver serious tax savings for your small business. Here’s what you need to know (and how it differs from Section 179).

bench.co

 

[Rfreeman]

I believe since the property is considered special use (i.e. singular purpose) there is also accelerated depreciation on the bldgs.