SELF STORAGE STORY – PART IV OF IV

And, finally, we can do the same thing if we build multifamily housing, apartment buildings, for you. The income tax benefits will not be as big and the cash flow will not be the same as self-storage facilities but the appreciation for creating long-term capital gains will be wonderful! And, long term capital gains are taxed at a lower rate than ordinary or earned income.

We cannot build an apartment building the same way that we build a self-storage facility for you and get you a million dollars in Bonus Depreciation. But what we can do is segregate the cost of the appliances, the cabinets, the ceiling fans, the pop-out windows, and all of the other tangible personal property from the structure of the building and take Bonus Depreciation on these items. This is called a cost segregation study. The total probably will not be one million dollars but, depending on the size of the apartment building, it should be substantial.

Tomorrow I will begin another multipart article entitled "Cost Segregation Studies on Steroids". It will show you how to use cost segregation studies VERY aggressively, but legally, to get a lot of Bonus Depreciation when building an apartment building. I NEVER advocate tax evasion, only tax avoidance. There are those out there who practice tax deferral and charge you a lot of money to pay the tax you would have paid anyway but pay it later. I'll get into that some other time. But, it's my job to reduce your tax liability and not defer it.

My name is Paul Levine and I am the Managing Member of SELF STORAGE CONSULTING & CONSTRUCTION, LLC. You can call me at (818) 298 – 4000 after 10 AM Pacific Time 7 days a week. Or, you can send an email to me at either [email protected] or at [email protected] and I will always get back to you in a timely manner.

And, please, do a favor for me. If there is any particular reason that you do not want us to build a self-storage facility or an apartment building for you based on what I have written, write to me or call me and let me know what I can do to change what I have written over all of these months. I have over 700 followers on Facebook and over 1,000 followers on LinkedIn and someone should have some good advice for me.