Quote:
Originally Posted by secondcurve
Is it just me or is this lady highly offensive? "An error was made" which allowed the sale to be blocked? I wonder what the lease payments were for all these years? Probably a pittance? She should have bid above the appraisal price ($480,000) if she wanted the property. Her sense of entitlement is obnoxious.
|
From a financial viewpoint LL said they have spent $500k in improvements over the 30 years . $200 k for a building the rest was for taxes, lease payments. First the 200 k in building was an asset that is fully recovered through depreciation and a reduction in Fed taxes. The other $300k over 30 years amounts to $10k a year for taxes and lease payments. Can anyone sell millions of dollars of boats on that property and only pay $800 for taxes and lease payments. In addition those are normal cost of doing business and in their tax bracket the net cost after taxes would only be half that amount. They should have made a creditable bid as they have had a great deal over the years and they could then depreciate the cost of the new building over its useful life.