360° Coverage : How To Ranch Like Tom Cruise On A Lower Budget

2 Updates
How To Ranch Like Tom Cruise On A Lower Budget
Photo Credit: Forbes Business

How To Ranch Like Tom Cruise On A Lower Budget

Jan 1 2014, 12:05pm CST | by

Not everybody can be Tom Cruise, but even without taking up Scientology, there are ways of participating in the Tom Cruise experience.  For example, it was reported that Tom Cruise was paying $400...

Filed under: news

 
 
 

36 weeks ago

How To Ranch Like Tom Cruise On A Lower Budget

Jan 1 2014, 12:05pm CST | by

Not everybody can be Tom Cruise, but even without taking up Scientology, there are ways of participating in the Tom Cruise experience.  For example, it was reported that Tom Cruise was paying $400 in property tax on an $18 million getaway ranch in Colorado.  The great property tax deal was courtesy of Colorado’s generous agricultural exemptions and a few sheep who kept the grass short.  Here is a story on Farmer Tom by my blogging buddy, Kay Bell.  Storm Mountain Ranch was designed to share the gentleman gentlelady ranching experience with those a bit down the economic ladder from Tom Cruise.

Storm Mountain Ranch describes itself as “ a fully established, private, gated ranch community, located less than 10 minutes east of Steamboat Springs, Colorado. The ranch is a conservation development on approximately 1100 acres with only 14 Homeowners.” Storm Mountain took the agricultural exemption a little further, asserting that the residences were integral to agricultural operations much like the ranch house on the Ponderaso where Ben Cartwright issued orders to Hoss and Little Joe.

The county assessors for Routt County saw it differently which brought the matter before the Colorado Board of Assessment Appeals (Sorry have not found a free link.)   The property had previously been considered agricultural, but the assessors thought that House Bill 11-146 which calls for carving up to two acres of land on which a “residential improvement” is located  out of the agriculturally exempt land unless the improvement is “integral to an agricultural operation”.

The argument about whether the residences were integral to the operation of the ranch was all about what the residents were doing, since apparently nobody was keeping a horse or a tractor in their garage.  The discussion reminded me a lot of the type of discussion you will see in passive activity and hobby loss cases. Storm Mountain’s argument was, in part, that since the agricultural operation was not leased out, but rather run by the Homeowners Association, each of the homeowners, by virtue of membership and dues paying was participating in agricultural operations.  There was more to it than that.

Petitioners serve on HOA committees and participate in quarterly HOA meetings where decisions regarding the agriculture program, budgeting, capital improvements, equipment, and water rights are discussed. The HOA Board oversees the SMR employees. Petitioners also participate in informal meetings at the ranch addressing agriculture program issues. These informal meetings can occur as owners encounter each other or the ranch manager on the road and stop to talk; as they meet each other elsewhere on the ranch property, and at social gatherings. All Petitioners who appeared testified that they spray weeds and are involved in creek and ditch maintenance on their individual lots that support the SMR agriculture program.

The assessor saw it differently.

The attendance charts show that some Petitioners are regular participants, some are occasional participants, and some rarely participate. The witness concluded that Petitioners are several steps removed from the agriculture operation on their lots because of the HOA, the full-time SMR staff, and the agricultural program leases. The witness also concluded that the activities of the individual Petitioners do not meet the statutory requirements to qualify them as integral to the agriculture operation on their lots.

The Board went with the assessor further noting that some of the activity like weed killing was being done more in their capacity as homeowners than in support of the agricultural operation.

Even though, the assessor won on the primary issue, that the residential portion of the lots were not integral to the agricultural operation, the overall decision was for the most part in favor of the homeowners.  The “residential envelope” for each homeowner was one acre.  The rest of their acreage (either 34 or 69 acres) maintains its agricultural classification.  The assessor argued that most of the value of the entire parcel should go to the residential acres, which gave them each a valuation of $1,430,000.  The Board ruled that an acre is an acre and the acre with the house on it was no different than any of the others which ended up with a valuation of $60,000 per lot.

So it would seem that a condominium style version of the Tom Cruise getaway experience, complete with bargain real estate taxes, is still available to the not quite 1% among us.

You can follow me on twitter @peterreillycpa.

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

NASA to make major announcement about spacecraft contracts
Washington, Sep 17 (IANS) US space agency NASA said Tuesday it will make a "major announcement" regarding the awarding of contracts to build commercial spaceships that will send the country's astronauts to space soil by 2017.
 
 
Chip in to enhance links, president tells Indians in Vietnam
Ho Chi Minh City, Sep 16 (IANS) The Indian diaspora in Vietnam can play a "significant role" as a "bridge" in deepening relations between the two countries, President Pranab Mukherjee said Tuesday.
 
 
Ho Chi Minh City's rise as economic hub marvellous: President
Ho Chi Minh City, Sep 16 (IANS) Lauding the perseverance and success of the people of Vietnam, President Pranab Mukherjee Tuesday expressed admiration at how Ho Chi Minh City has transformed into a prosperous regional economic hub.
 
 
Modi government improved economy, India's global image: President
Ho Chi Minh City, Sep 16 (IANS) In a departure from custom, President Pranab Mukherjee Tuesday largely abandoned his prepared speech to the Indian community in Vietnam and instead extolled the Narendra Modi government for its steps to improve the economy and burnish India's global image.
 
 
 

Latest from the Network

Spanish minister warns against Catalonia independence vote
Madrid, Sep 17 (IANS) Spanish Minister of Foreign Affairs Jose Manuel Garcia-Margallo warned that if Catalonia region continues with plans to hold an independence referendum Nov 9, the regions status as an autonomous...
Read more on Politics Balla
 
Men are pigs: Kelly Brook
London, Sep 17 (IANS) Actress-model Kelly Brook targets at her ex-boyfriends Billy Zane and Jason Statham again by branding them as "pigs". The "Piranha 3D" star released her tell-all memoir "Close Up" earlier this...
Read more on Celebrity Balla
 
Dutch Supreme Court upholds sentence in child abuse case
The Hague, Sep 17 (IANS) Dutch Supreme Court Tuesday upheld the 19 years jail sentence of a man, who abused 67 young children in a child care centre. In April last year Robert M. was sentenced to 19 years in prison...
Read more on Politics Balla
 
Kate Moss is Kristin Cavallari's style icon
Los Angeles, Sep 17 (IANS) Reality TV star Kristin Cavallari admires Supermodel Kate Moss' "effortless" dressing and describes her as the "ultimate" style icon. The former "The Hills" star, who gave birth to her...
Read more on Celebrity Balla
 
NASA to make major announcement about spacecraft contracts
Washington, Sep 17 (IANS) US space agency NASA said Tuesday it will make a "major announcement" regarding the awarding of contracts to build commercial spaceships that will send the country's astronauts to space soil...
Read more on Apple Balla
 
US says it wants India to have good relations with China too
Washington, Sep 16 (IANS) Ahead of Chinese President Xi Jinping's visit to India, the US says it has a very broad relationship with India and wants New Delhi to have good relationships with all the countries in the...
Read more on Politics Balla
 
22 Palestinians arrested on suspicion of rioting
Jerusalem, Sep 16 (IANS) Jerusalem police and border patrol officers have arrested 22 Palestinians on suspicion of rioting in east Jerusalem in recent days, Israeli police said in a statement Tuesday. Among the...
Read more on Politics Balla
 
Iraqi troops retake villages, US jets pound IS positions (Roundup)
Baghdad, Sep 16 (IANS) Iraqi security forces Tuesday recaptured several villages in heavy clashes with extremist insurgent groups, while US warplanes expanded their airstrikes and pounded Islamic State militants near...
Read more on Politics Balla
 
London's Muslims call for peace after beheading of Briton by IS
London, Sep 16 (IANS/RAY) London's Muslims are fearful of a backlash from indigenous Britons following the beheading of British national David Haines in West Asia by militants of the Islamic State (IS) terrorist group...
Read more on Politics Balla
 
Iggy Azalea's ex-boyfriend owns the rights to alleged sex tape?
Iggy Azalea's ex-boyfriend claims she indirectly gave him permission to release and market their alleged sex tape. Hefe Wine, who also previously managed the 'Fancy' hitmaker, says she signed a contract in 2009 giving...
Read more on Celebrity Balla