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Discussion:Gasoline Stations

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Discussion Forum Index --> Tax Questions --> Gasoline Stations


Sfbcpa (talk|edits) said:

23 April 2007
I have a client who just built a gas station with a convenience store. We incorporated his business and now I am trying to sort out the construction costs and transfer the personal property into the corporation. Should this include gas pumps and tanks? The County we live in classify these as personal property. Should the corporation own these or should my client keep these in his name? The corporation will be paying my client a monthly rent for the building and property.

Tstolley (talk|edits) said:

23 April 2007
Put them in the Corps name in case they blow up, leak and contaminate the ground, or otherwise misbehave.

Sfbcpa (talk|edits) said:

24 April 2007
Sounds like a good plan.

Sea-tax (talk|edits) said:

24 April 2007
Good Day sfbcpa, I am also a PNW person. Are you refering to the King County PPA tax? If so I do not thin that this has any bearing on the federal tax situation.

I do several gas stations and most are s-corps or llc's as 1065's.

I usually put all equipment, canopies, pumps and the sort in the s-corp if possible. When it comes to the building and land I try to get the client to put them into an llc/1065. But often times as you are probably aware the client does what they want first then comes to talk to you after the fact. Don't forget that the canopies have a relatively new depreciation life I think it is 7 years if I am not mistaken. Used to be 15 year property. Good luck

Sfbcpa (talk|edits) said:

4 May 2007
Thank you. That is what we decided to do is to put all of the equipment including the pumps, tanks, etc into the S Corp. The depreciation was 5 years on almost all of the equipment - a real good tax deduction. Good luck to you too!

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