Tax Issues

  • Exit Strategies: Best Practices for Selling a Self-Storage Facility
    In planning an exit strategy today, self-storage owners will not only be rewarded by operating a better investment in the present term, but will be handsomely rewarded in the future when the property is sold. ...More
    February 25, 2009 Jeff Supnick Posted in Articles, Finance, Real Estate
  • Self-Storage Sales Tax Reinstated in South Dakota
    On Monday, the South Dakota Senate approved a plan to restore the state sales tax on self-storage units. ...More
    January 27, 2009 Posted in News
  • Self Storage Not Taxable Says South Dakota Supreme Court
    In a 3-2 decision, the South Dakota Supreme Court has ruled that a business that offers self-storage units for rent is not subject to the state sales tax. ...More
    December 30, 2008 Posted in News
  • Arkansas Senator Revives Tax-Cut Bill That Would Help Self-Storage
    Arkansas Sen. Bobby Glover has re-filed a tax-cut bill that failed to clear a House committee in 2007 but would repeal the sales tax levied on mini-warehouse and self-storage rental services as of Jan 1, 2011. ...More
    November 25, 2008 Posted in News
  • Cost Segregation Increases Cash Flow for Self-Storage
    A self-storage owner can increase the cash flow of his facility through the use of cost segration, which allocates depreciable property to the correct categories in an effort to maximize allowable deductions. ...More
    November 18, 2008 Mark de Stefanis Posted in Articles, Finance
  • Contemplating Cost Segregation
    A decade ago, you could build a self-storage facility in almost any location, raise rents and clip coupons. Before long, owners were in phase-two mode and thinking about quitting their day jobs. Boy, have times changed! But one thing that hasn’t changed is the cash-flow ...More
    November 1, 2007 Mark de Stefanis Posted in Articles, Finance
  • Self-Storage Tax Advantages
    If it were possible to expense the entire construction cost of a new facility the year it’s incurred instead of capitalizing it, most self-storage owners would do so in a heartbeat. Although that’s not feasible, cost-segregation studies provide a good—and absolutely ...More
    September 21, 2006 Jerome Kootman Posted in Articles, Finance
  • Cost Segregation
    In the case of Hospital Corp. of America and Subsidiaries v. Commissioner , 109 TC (1997), the tax court concluded property qualifying as tangible personal property under former investment tax credit (ITC) rules would also qualify in the same manner for the purposes of tax ...More
    April 1, 2002 Mark de Stefanis Posted in Articles, Finance