The Mesquite Nevada Real Estate Blog

Does buying a Garage Condominium Qualify as a Second Home to IRS -

NO, Really, it's Garage Town USA - What a great idea!  Looking for a second home?  How about a second garage? People ( by people I mean men - I had to say that! )  become really attached to their garage.  How many times have you found the 'perfect home', but the husband did not like the garage?

You could buy your own garage condominium for all of that extra stuff instead of renting a regular old storage unit by the month.  Build equity in a garage condo instead of just throwing away rent on that storage unit!

This would be a wonderful opportunity here in Mesquite NV.  Residential lots are small and pricey.  We have a lot of 3 car garages, but only a few are big enough to put an RV in.  CC&Rs are strict and most do not allow RV PARKING or boats in driveways or on the street.  (What a bunch of fuddie-duddies!)Garage Condo RV Parking Mesquite NV Real Estate

The first garage condo community started out in Coeur d’ Alene, Idaho as an expanded storage facility for a new residential community with strict CC&Rs that did not allow oversized garages or street parking for recreational vehicles or boats.  This idea turned into Garage Town USA with 19 partnerships and franchises in 6 states.  (Why can’t I have good ideas like this?)

What a great little second home - add a few little homey touches and use it as a vacation getaway!

It would be perfect for car buffs as well.  You wouldn't want that restored '65 Mustang crammed in there next to the Minivan, would you?  How about Dad's baby - the speedboat with the $3000 paint job?  He really gets POed when the kids throw the soccer equipment and muddy shoes in the boat, so that Mom doesn't know they didn't put them away in those crowded storage cupboards!

The one in Coeur d’ Alene has a clubhouse and restrooms - owners pay a condominium fee for maintenance.  The clubhouse can be used for parties, poker tournaments, weekend football games - why mess up your own house with all those beer cans and pizza boxes?  You could give the church a little competition and have Bingo!

Some garage condo units in other areas have up to 2000 sq ft, with custom floors and sofa beds.  The price can be as high as $200K.  Owners get a deed for their own unit and pay their own taxes and utility bills.  This would be my husband’s dream home, a garage and a bathroom - let’s not tell him about this!

And if it qualifies as a second home, can you write off the mortgage interest?  According to IRS, a qualified home must have sleeping, cooking and toilet facilities.  So if a mobile home, house trailer or a boat qualifies, why not a garage condominium?  As long as there is a bathroom, sleeper sofa, and a mini-kitchen, would that be enough to qualify as a second home?  ( Ask your tax advisor before you consider the purchase of a garage condo, I am just guessing here! )

For more details and history of Garage Town USA read Tom Kelly's article at Inman News

Garage Town USA - Is it coming to a town near YOU ? 

 

                  

Virginia Hepp
ERA Brokers Consolidated
Mesquite NV Real Estate
Mesquite Chamber of Commerce Member
702 622-1177
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                                 Mesquite Nevada Real Estate Agent  ~ ~  ERA

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Comments

Thanks for the post, Virginia.  What a great concept!

Posted by The Entire Team of Price & Company Professionals (Price & Company Realty) about 4 years ago
Chris - Thanks, this is the first I have heard of it!
Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago
Virginia, Very intriguing!  When my brother-in-law the architect first vistied us here in Michigan he was astounded by how many properties had tiny living spaces and enormous garage spaces.  First, I explained to him the concept of snow, covering vehicles that need to go to work in the winter, not to mention snowmobiles for those days when going to work will not work, then I went on to explain about the Great Lakes and the boat people.  I think a garage condo would be a really great success here.  Generally people just put up the extra garage spaces or add "pole barns" - another thing I needed to learn about when I moved to Michigan!
Posted by Susan Walters (Keller Williams Realty, Ann Arbor, MI) about 4 years ago

Hi, Virginia - I think this would be an outstanding idea for those areas where HOA's dictate what can, and more importantly, can not, go in your driveway or beside the house, etc.  We've lived in a neighborhood with a gestapo like HOA and this would have been perfect for all the toys. 

Posted by Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-328-9328 (Jesse Clifton & Associates, REALTORSĀ®) about 4 years ago
Virginia, that is such an interesting concept. At first to me it sounded like a shed or just an auxiliary garage, but if it is big enough for sleeping quarters AND a bathroom it could get the tax deduction. I don't think I've ever seen any of these around my area. I think like what Jesse said, our HOA would never allow them in our neighborhood because they are too "different."
Posted by Gary Woltal - Assoc. Broker REALTORĀ® SFR Dallas Ft. Worth (Keller Williams Realty) about 4 years ago
Virginia, 2000 square feet is the size of a large condo in these parts!  And a garage space in some of these condos sells for the price of a decent sized house in other parts of the country!  Cute post!
Posted by Patricia Kennedy (Evers & Company Realtors) about 4 years ago

Susan - With the golf and the desert here in Mesquite, people have a lot of toys.  I think it would go over here really well.  Many subdivisions here do not allow Pole Barns or RV or boat parking at all.  The closest I have been to living in snow country is Reno, Nev, surrounded by snow areas, but not really much in town.

Jesse - Mesquite is one of those strict areas, that is why the concept is so interesting to me.

Gary - So far, I think they are only in about 6 areas, but selling really well.  Some with clubhouses!  What will they evolve into - pools, spas, etc.?  Some campgrounds are turning into small resorts.

Patricia - 2000 sq ft is a pretty nice house here - I don't know if Mesquite is ready for something like this! 

Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago
A great way to dress up a storage facility.  Lots of people need spaces like that in vacation areas as they have too many toys and not enough storage!
Posted by Summit County, Colorado Realtor l Joanne Hanson (Coldwell Banker Colorado Rockies Real Estate) about 4 years ago
You know the tax status applies to boats when they meet a minimum square footage so I would ask your CPA. on that question
Posted by Steve Loynd, Alpine Lakes Real Estate Inc., Loon Mt, NH. about 4 years ago
I rent a storage unit now.  That would be a great option if the price was right.
Posted by Scott Guay Associate Broker Ocean City and Ocean Pines MD (Coldwell Banker Residential Brokerage) about 4 years ago
Virginia, I think it brings new meaning to the phrase "starter home." : ) Very different, for sure. Thanks for bringing this new concept to the rest of us.
Posted by Gary Woltal - Assoc. Broker REALTORĀ® SFR Dallas Ft. Worth (Keller Williams Realty) about 4 years ago

Joanne - Amazing all of the toys people just have to have.  My son is one of those - he has 1 of everything, even a horse, but lives on 5 acres in CA.

Steve - There are probably a few more qualifications, too.

Scott - They are in different parts of the U.S. now at different prices, depending upon amenities.

Gary - Or retirement home?  Some guys (like the one I am married to), might think it is a perfect 'home' for retirement, better than Plan B that he came up with recently - I'll tell you that one some other time! 

Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago
Virginia: I want to get a detached garage to put next to my 2 car garage....
Posted by Roland Woodworth,SFR - Clarksville Short Sale and Foreclosure Resource (Keller Williams Realty) about 4 years ago
Thats a great thing about this world. Creative ideas such as a garage condo. And creative in making this blog!  Good job!  I had fun.
Posted by Utah Dave and Utah Homes for Sale (Robison & Company Real Estate) about 4 years ago
Virginia, thank you for visiting my blog about adding a fear button.  I hope you help spread the word about this feature so many will use it.  Maybe someday we will read it helped!
Posted by Dick Betts (Dick Betts National Speaker) about 4 years ago

Roland - You must be a toy collector if you need another garage.

Dave - Thanks, I had fun with it - some people say I am easily amused!  I take it as a compliment.

Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago
Dick - Your post about a fear button is something everyone should read.  It is an excellent safety idea and so easy to do.  Your posts about cell phones and others are always so informative and easy reading.  And it is featured - good.
Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago
That is a cool idea...you wouldn't believe the prices per mo and what kind of footage for storage here!
Posted by Celeste "SALLY" Cheeseman, RA, CRS, HAWAII Real Estate & Relocations (Century 21 Liberty Homes) about 4 years ago
Sally - I bet it would be outrageous over there!  Here land is a little cheaper.  :)
Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago
I just learned something new!  It's a great idea, but I don't think we'll get any here.  Way better than paying for storage fees.
Posted by Georgina M. Hunter R(S) e-Pro Maui Real Estate Sales (Jim Sanders Realty Inc. - Maui) about 4 years ago
Georgina - I imagine that land is way too expensive over there to even think of something like this.
Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago

This is a really cool idea.  I want one. I'm curious if these garage homes are listed in the MLS when they are built or come up for resale?

Posted by Bo Buchanan-Blue60.com Directory For Real Estate Pro's (Blue60.com) about 4 years ago

Bo, my husband wants one, too.  They don't have any here yet.  I'm sure they would be listed as a resale.  We actually had a garage listed for sale - it was in a condominium complex, you had to own a condo there to buy a garage.  The garages have their own APN #, title, and a separate monthly HOA fee - about 10 bucks!

Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) about 4 years ago

Virginia, wow, how cool for us guys. Neat idea.

Posted by * Rate A Home (Rate A Home) almost 5 years ago

Duane - I was amazed when I first heard about it - who would buy such a thing?  Well, apparently a lot of people!  My husband would!

Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - 55+ Buyer Representative (ERA - Mesquite NV Homes For Sale) almost 4 years ago

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