Quote:
Originally Posted by nhcatrider
If you look at tax records, some of the stores are owned by RMD, which is owned by Mike Kettenback Sr., who is T's brother in law. More are owned by a real estate company owned by T's wife. The grocery store does not own any of the buildings, they instead have long term leases on them.
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There are many reasons why seperate entities would own the real estate.
The first may be taxes. The depreciation on the real estate can be used to offset the taxable income for the company. If the company is very profitable higher rents can be charged, the net income will decline, and the increase in property income can be offset by the depreciation, thus reducing your income tax liability.
Liability may be another reason. If someone sues it is better to have isolated your assets than put them all under one name.
Only the family knows why they structured it the way they did. And really, with a privately held company it is really none of our business!