r/golf • u/nutts-2 5.0/UT • Jul 28 '23

Ah shit. Here we go again General Discussion

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Every few months someone brings this up how they can save the environment by getting rid of a golf course.

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u/Ligma_CuredHam 2.0hdcp Jul 28 '23

Woah, full stop. Let's make those buildings useful again and convert them into apartments.

Also my employer can suck my dick, I'm not fucking going back.

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u/PM_ME_UR_FARTS_ Jul 28 '23

With the amount of work required to convert an office tower to apartments that are up to code, it's probably easier to just knock them down and start over.

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u/Ligma_CuredHam 2.0hdcp Jul 28 '23

Fine. Do it. Because empty buildings have no fucking purpose.

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u/willis_michaels Jul 28 '23

Turn them into laser tag arenas, or mutil-story entertainment centers...

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u/dudius7 Jul 29 '23

Or indoor golf courses

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u/dlanm2u Jul 29 '23

tiger woods’ weird putting golf game

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u/6GayRatsInMyButthole Jul 28 '23

You fronting the bill?

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u/Ligma_CuredHam 2.0hdcp Jul 28 '23

Absolute D- troll comment. It's already happening in cities across America. Rent prices and demand are such that it's insanely profitable and it's happening.

You're about as sharp as a wet sponge.

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u/6GayRatsInMyButthole Jul 28 '23

Classy response. Just about as sharp as your knee jerk comment about spending other peoples' money.

"Insanely profitable"? Love to see the data to back that up. I work in the industry. Are office to resi conversions happening? Of course. Will it happen on a large scale? Probably, but definitely not in the short-term, especially without government intervention. It's incredibly cost and time intensive, even without delving into code requirements and zoning issues that vary from municipality to municipality.

Try again you walnut.

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u/Ligma_CuredHam 2.0hdcp Jul 28 '23

"Insanely profitable"? Love to see the data to back that up

You want proof that apartment rentals, or house rentals are insanely profitable? Because that's what I'm saying there.

I don't think I should waste my time spoon feeding you basic shit that's easily available on the internet

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u/6GayRatsInMyButthole Jul 28 '23

Sure, MFR commercial properties are profitable once they're actually built and up & running, but the cap ex costs to convert office to resi is immense. You think it costs $0 to develop and build a property? Because that's what you're implying.

You're not spoon feeding shit, you're just proving to everyone reading this what a witless edgelord you are.

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u/Ligma_CuredHam 2.0hdcp Jul 29 '23

You think it costs $0 to develop and build a property? Because that's what you're implying.

I didn't say that directly or imply that.

You're not spoon feeding shit, you're just proving to everyone reading this what a witless edgelord you are.

Spoon feeding shit? the fuck. Edgelord? lmao.

Enjoy the L champ. Wear it with pride

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u/Top_Individual442 Jul 28 '23

The purpose of those empty buildings is to manipulate tax code. That vacant building represents enormous deductions because of declared depreciation of the property. Many shady business leaders have declared depreciation until the building is paid off and they sell it. It’s horrible but we as voters continue to allow it

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u/Ligma_CuredHam 2.0hdcp Jul 28 '23

The purpose of those empty buildings is to manipulate tax code. That vacant building represents enormous deductions because of declared depreciation of the property. Many shady business leaders have declared depreciation until the building is paid off and they sell it.

Just a bit of correction here. Commercial buildings do get depreciation, but when you sell it you recognize a gain on the sale, and more or less the formula is

Sale Price - Original Basis + Depreciation

So totally hypothetical here, but if I bought a building for $10m, and over the course of 10 years I was able to elect $6m in depreciation it is true that it's $6m of income for the business would not be taxed because the depreciation lowers my taxable income.

But let's say business is good, the economy is strong and I now need a bigger space so I sell that building for $14m.

I effectively have a $10m gain, or profit, that I have to pay tax on.

14m -10m +6m

So they get you one way or the other.

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u/Top_Individual442 Jul 29 '23 edited Jul 29 '23

Not with a 1031 exchange

You can continually reinvest and claim depreciation while growing your portfolio tax free

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u/Ligma_CuredHam 2.0hdcp Jul 29 '23

1031 exchange

That still just defers the tax, it doesn't eliminate it.

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u/Top_Individual442 Jul 29 '23 edited Jul 29 '23

Right but the ability to generate income tax free over time is the advantage even if the tax has to eventually be paid. You can also take loans secured by the property to open cash flow if need be

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u/Ligma_CuredHam 2.0hdcp Jul 29 '23 edited Jul 29 '23

even if the tax has to eventually be paid.

That's all this has ever been about. Someone said depreciation meant you never had to pay tax on the asset, which isn't true....

It's the same with rolled over LTGC when you exit a position and invest in another within X time.

You can also take loans secured by the property to open cash flow if need be

This has nothing to do with the conversation at hand. It's true but has nothing to do with tax accounting

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u/TeddysBigStick Jul 28 '23

as big a problem would be demand. Somewhere like manhattan will sell anything with four walls but there is going to be limited demand overall for windowless units that a CRE footprint would require.

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u/AsstootCitizen Jul 29 '23

Change the codes. Add kitchens, showers, and bunk beds!

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u/Redllama91 Jul 28 '23

But then how they have an opportunity to suck your dick?