Vacancy tax…..
So the landlines can write off no rent as a business loss and then the tax on tip of that.
He/she won’t be paying any taxes. Everything will be written off.
They’ll configure the local tax return not to be able to use the “vacancy tax” as a write off.
Everything will be written off
And the owners equity will still be going up $10,000 a month.
I can see a scenario where a typical 100-unit apartment building is converted to a condominium, with the building owner establishing 50 separate LLCs that would each own two units.
Up to $20k/year vacancy tax? Umm…
$20k/12 = $1,667/month
Typical rent in SF? $4k/mo?
So, at peak penalty, the landlord/owner is paying a vacancy tax equal to 1/3 month rent each month to keep a $4k/month unit off of the market. Even less (as a percentage) if the unit rents for more. At $500, the monthly charge is $42/month.