Building a new garage. Need advice. | FerrariChat

Building a new garage. Need advice.

Discussion in 'California (Southern)' started by PatrickShim, Nov 25, 2007.

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  1. PatrickShim

    PatrickShim Formula 3

    Jun 14, 2004
    1,755
    Southern California
    Full Name:
    Patrick Shim
    I am currently looking at a small plot of land available in a fairly nice residential neighborhood the Inland Empire area (near San Antonio Heights). The land has been vacant as it was a leftover from a residential construction project and was too small to build a home there. It is very safe and nice neighborhood, both the mayor and police chief of the city live in the same cul-de-sac, and a small park near by. I am considering buying the land to build a small garage there.

    Some of the deals I've been involved in the past a couple of years started to materialize and I am considering getting a few toys (nothing too crazy, but just a few toys). I'll be redeploying most of the realized investments back in select PE and RE deals, but considering the current market situation, I'm currently on a holding pattern. While I'm on holding pattern, I wanted to get some toys -- only toy I got so far is a Lotus Elise last month. I am considering getting some other toys soon but I have no garage/storage space.


    [QUESTIONS]
    I am considering incorporating an entity and take advantage of the tax liabilities.
    1. Can I write-off all/part-of expenses related to the garage (property) and the collection (cars) and let them be passed down to my personal tax liabilities?
    2. Can I do the same with the depreciations? For example, if one of the cars depreciated $35k in one year, can I somehow pass that depreciation down to my personal tax liabilities?
    3. Would it make more sense to put the garage in a separate legal entity and keep the cars separately?
    4. I might rent out some garage spaces since I will have a lot more spaces than the number of cars I currently have. I think $400/mo. would be reasonable, but wanted to see what you guys think would be reasonable (it will be a really nice and clean garage with ADT alarm).

    If you are,

    1. contractor and would like to be involved in the garage building project,
    2. CPA who can help me some tax issues (I had a very good CPA but he recently passed away),
    3. anyone who might be interested in renting a space for your car,

    please PM me.

    Thanks!

    - Patrick
     
  2. darth550

    darth550 Six Time F1 World Champ
    Lifetime Rossa

    Jul 14, 2003
    60,788
    In front of you
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    BCHC
    If all you say in the first part of this post is true then you already know these answers. Buy a toy (or not) for YOU and drive/ride it.


    Stop grandstanding!
     
  3. KraigG

    KraigG Formula 3

    May 25, 2006
    1,501
    Willow Springs
    Full Name:
    Kraig
    What ever happened with the crazed redneck neighbor from awhile back?
     
  4. PatrickShim

    PatrickShim Formula 3

    Jun 14, 2004
    1,755
    Southern California
    Full Name:
    Patrick Shim
    Haha. I moved. But another crazy neighbor again... even worse. :)
     
  5. TG

    TG F1 Veteran

    Oct 26, 2004
    6,290
    Newport Beach, CA
    Full Name:
    Taylor
    Next time check it out first. Dude.
     
  6. 4retr

    4retr Formula Junior

    Nov 21, 2004
    384
    Southern California
    Full Name:
    David B.
    I have used storage spaces for cars off and on during moves and construction projects. I think $400/month for a single space in the inland empire is optimstic. In addition, I imagine a stand alone garage structure in a residential setting would stand out and sightings of exotics would spread quickly (When I stored my "exotics" it was always in the area of the property with the least amount of traffic). No amount of passive security will protect the cars if they want them.
     
  7. Steve R

    Steve R F1 Rookie
    BANNED

    Sep 15, 2004
    3,018
    MeSoNeedy, CA
    Full Name:
    TorQ Master
    1) Consult a CPA, but in general business expenses are just that, expenses...they can be written-off against profit. If you build this, you can depreciate the structure over a certain time period...but not the land. The cars? You own the cars...unless it's part of a rental fleet or a business, you can't write them off. And unless the building is used as a storage business, you won't be able to write that off either. If you use a portion of the garage for personal use, then that portion wouldn't be part of the busines or related write-off.....it's pretty darn simple, just consult any CPA. And thanks for letting us know the one you were using just passed away....pertinent info, or perhaps you're attempting to illicit a sympathetic response to accompany a cry for attention?

    2) If you own these cars as your personal vehicles, there is no depreciation that you can write-off. Only if the vehicles are part of a rental fleet or business.

    3) If you think you may be personally sued and they'll go after your garage/warehouse/property as an asset...then yes, placing it in another name or entity might spare it's exposure to being attached or liened.

    4) Storage space for a single car shouldn't likely run much more then $150 per month....and that's garaged, insulated conditions, with security. $400 a months is dreaming. Maybe $200, not $400. Did you even research this?

    If this property has enough room for a large enough garage to store more then a couple cars, then it certainly has enough room for a small house or even duplex (elongated layout)....buying it just for a storage warehouse is rather impractical....or so it would seem. You're also providing us with very elaborate IRRELEVENT details that we don't need to know and are probably just presented to lend support and credit towards this being a sincere project. Hate to say it, but the accusation of grandstanding is appropriate.

    Seriously...you buy some land and plan to keep a few of your cars in a garage there...how could the depreciating value of your cars suddenly become a write-off??????? Your presentation is quasi-professional, but underneath it all it makes no sense and it rather suggest you have no idea what you're talking about; you're grandstanding...and it pisses me off cause I keep going to bat for you as being a good guy and you keep pulling this kind of crap.

    But if you are serious, the fact that you have no grasp to the point where you are asking these questions would dictate you're out of your league and shouldn't proceed. If a guy says he wants to rebuild his engine all by himself and then asks where the spark plug is....you'd tell him to stop, eh?
     
  8. 356racing

    356racing Formula Junior
    Silver Subscribed

    Sep 24, 2004
    519
    Paradise Valley, AZ
    You will never get plans approved for a garage only structure with residential zoning.
     
  9. Jet-X

    Jet-X F1 Veteran

    Nov 2, 2003
    5,688
    Orange County
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    Brian

    Best response thus far - both funny yet true.
     
  10. Steve R

    Steve R F1 Rookie
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    Sep 15, 2004
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    Don't encourage me...;)

    I'm sorry if I seemed a bit harsh, but seriously, he even played the sympathetic card with the deceased CPA. Hey Patrick...he's not dead, he's hiding from you! :)

    Focus, concentrate and develop discipline on not being so transparent. When you post such topics you bring shame, disgrace and dishonor to F-Chat, if take this advice so you can be lucky-best winner!

    oh Gawd........
     
  11. Modenafan

    Modenafan F1 World Champ
    Lifetime Rossa Owner

    Dec 19, 2004
    12,069
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    Jon
    Hey Steve, what are you wearing? Sorry, I was thinking about yesterday. :D
     
  12. Steve R

    Steve R F1 Rookie
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    Sep 15, 2004
    3,018
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    Hey Jon...remind me not to drink excessively or go camping with you. :)

    Btw, your car's interior really brings out your eyes! ;)
     
  13. TrentS

    TrentS Formula Junior

    Nov 22, 2005
    789
    South Florida
    +1

    I'd like to know how you're going to accomplish that myself.

    As for $400 per month for a single car space? :eek: Good luck with that one too!

    Would you 2 like to get a room? :p
     
  14. brokenarrow

    brokenarrow F1 Rookie

    Sep 25, 2006
    3,737
    Txass
    Full Name:
    Bill
    There are so many issues with this idea it's unbelievable. Most have already been pointed out; cars (unless you lease them, or they are business related-you're toast), structure (building in a residential area for cars--don't think so), you can only depreciate that portion of your residence that is business related (assuming you have income from the business-can always carry a loss, but you need numbers).

    If you are considering PE you're probably a "qualified investor" so you have money, but these ideas you have are really quite surprising, to be honest. I actually thought you were from a foreign country.

    I hope you have some creative tax accountant and a good set of lawyers to protect you against any future liens from the IRS--after they nail you for tax evasion.

    If it all works out, write a book and I'll stand in line to buy it.

    Cheers~
     
  15. darth550

    darth550 Six Time F1 World Champ
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    Jul 14, 2003
    60,788
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    #15 darth550, Nov 26, 2007
    Last edited by a moderator: Sep 7, 2017
    You know, Patrick, after this garage thing goes sideways you can always open up a shooting range....I think you may already have a few of these to use:
    Image Unavailable, Please Login
     
  16. B R

    B R F1 Rookie

    Aug 31, 2005
    2,818
    Los Angeles, CA
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    B R
    I think you need to open up a museum, that way you will probably get the tax advantages you are after. I have heard that there are very specific requirements in order to qualify ;).
     
  17. KraigG

    KraigG Formula 3

    May 25, 2006
    1,501
    Willow Springs
    Full Name:
    Kraig
    $400 a month per car? Will the place have marble floors? And in the 909 or thereabouts?

    Best of luck!
     

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