As the year comes to a close, we want to take this opportunity to remind you of the significant 2024 tax advantages that come from investing in PPR’s Opportunity Fund.
One of the most compelling benefits is accelerated depreciation.
Normally, the depreciation period for a commercial building is 39 years under the so-called ‘Straight Line Method’ of depreciation. However, using a cost segregation study can identify certain parts of the property, such as the equipment and machinery in a car wash tunnel, that qualify for shorter depreciation periods. By accelerating the depreciation of these assets, we can realize greater depreciation benefits, sooner.
You can read more about the advantages of depreciation with car wash operations here.
Why This is Good for PPR Investors
The Opportunity Fund is structured as an LLC, therefore the IRS allows investors to utilize losses created through depreciation, which is reported via the K-1 tax form.
So even if you invest at the end of 2024, this tax-deductible benefit applies, potentially lowering your taxable income from passive investments in the current year.
How Much Depreciation To Expect
Every investor’s tax situation is different, and we’re not tax advisors, but we do know that with the acquisition of two car wash locations this year, each worth approximately $4 million in depreciable value, the fund expects upwards of $7-8 million in depreciation to be passed on to investors in 2024.
This means all Opportunity Fund investors in 2024 can expect to receive aggressive depreciation benefits that can offset other passive income from their investments and businesses.
Alongside these significant tax benefits, investors also enjoy a 10% preferred return and an investor-friendly waterfall, which can make the Opportunity Fund an excellent addition to any portfolio.
To learn more or get started with an investment, schedule a call with our investor relations department here: