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HokieAl
Joined: 10/07/1999
Posts: 19,964
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based on searching, it looks like year 1 depreciation % is dropping

The tax cuts act of 2017 allowed 100% depreciation in first year. But that dropped to 80% in 2023 and 60% in 2024 and I think will keep dropping by 20% each year. It's possible that the election results in November could lead to new tax break opportunities next year, but there is no guarantee of that. Also, for carwashes it seems to be all building and technology focused for what qualifies. Land doesn't. But land improvements do. And it varies if the property is existing vs under construction and you get benefits if it is located in a Qualified Opportunity Zone. And there was some points about segmenting different parts of the carwash on different depreciation schedules for benefits. Overall, the carwash scenario seems complex enough to need dedicated experts. But also seems to be a very well worn path that should be easy for you to execute on with those experts. Congrats on the windfall.
Posted: 06/21/2024 at 01:09 PM ET
(In response to this post by MrBayAreaHokie)

Thread Replies (29)

Full Thread →
tax question for the tax experts
MrBayAreaHokie 06/21/24 11:13 AM ET
Write it off. They all do. -Kramer.**
MikeVT85 06/22/24 12:08 AM ET
No. **
GreenvilleVT 06/21/24 04:55 PM ET
actually you can
MrBayAreaHokie 06/21/24 06:19 PM ET
Better Call Saul**
section11hokie 06/21/24 03:19 PM ET
start a strip club- you will get even richer**
bigbadbird 06/21/24 02:15 PM ET
we don't have any of those here in the east bay
MrBayAreaHokie 06/21/24 06:21 PM ET
well - you have income on the sale- but a schedule C for car wash?
bigbadbird 06/21/24 02:15 PM ET
wanting more the depreciation to wipe out the gain from the stock sale**
MrBayAreaHokie 06/21/24 02:57 PM ET
A better question is
turkeywinghokie 06/21/24 01:47 PM ET
You could have several options 168 (K) bonus depreciaton and Section 179
Hokebury 06/21/24 01:25 PM ET
based on searching, it looks like year 1 depreciation % is dropping
HokieAl 06/21/24 01:09 PM ET
thanks chief**
MrBayAreaHokie 06/21/24 01:15 PM ET
You can make big $$$ using the carwash to launder blue crystal $$$**
Happy Dog 06/21/24 12:54 PM ET
Sounds like an excellent investment and appreciate all you want!
DonHo-kieHi 06/21/24 12:51 PM ET
butter face**
MrBayAreaHokie 06/21/24 12:52 PM ET
Cashless option to this point but you're receiving cash by selling, correct
BG Hokie 06/21/24 12:02 PM ET
i am getting money
MrBayAreaHokie 06/21/24 12:50 PM ET
Since it's ordinary income, shouldn't you think about moving to NV, FL, TX?**
EDGEMAN 06/21/24 11:53 AM ET
nah
MrBayAreaHokie 06/21/24 12:51 PM ET
plus they would come after me
MrBayAreaHokie 06/21/24 12:52 PM ET
A bud spent some time in California when he was in the Marines, and...
EDGEMAN 06/21/24 01:50 PM ET
I guess he screwed up by getting a CA driver's license
EDGEMAN 06/21/24 01:52 PM ET
Might be a legal question, call Saul Goodman.**
vthhhi 06/21/24 11:19 AM ET
I love a good car wash. **
Stork 06/21/24 11:15 AM ET
...and the boss don't mind sometimes if you act the fool**
Tuckahokie 06/21/24 11:35 AM ET
…better than diggin a ditch**
chumley 06/21/24 12:00 PM ET
who remembers George Carlin and Richard Pryor, in the same movie?
MrBayAreaHokie 06/21/24 12:57 PM ET
i do too**
MrBayAreaHokie 06/21/24 11:20 AM ET
It is taxing to wash the car by hand.**
Guy LeDouche 06/21/24 11:17 AM ET