Investors in commercial property gain profit from their investments in multiple ways. It is not just about the good deals; they are also eligible for tax benefits that no other investment option provides!
Interest on commercial mortgages is tax deductible. Commercial property owners have the same tax deductions available to homeowners for their commercial loan interest. In some instances, this deduction is significant enough to offset the taxes due on property profit completely.
We at Brenda McLean would like to help you enjoy a tax break when purchasing commercial real estate. We have a track record of helping thousands of buyers and sellers with their real estate needs.
If you have been eyeing a commercial property for sale in Gordon County, you will be highly pleased to know the tax benefits you will enjoy from your purchase.
Commercial Mortgage Interest Tax Benefits
Mortgage interest tax benefits mean that the annual interest payments you make toward your mortgage can be subtracted from the taxes your company owes. Simply declare your cumulative mortgage interest payments during taxation to benefit from this tax break.
You can deduct $30,000 from your taxes if, for instance, you pay interest at $2,500 per month for the entire year. If you are looking for Gwinnett county commercial real estate for sale, we have a listing to guide you.
Tax Benefit from Tax Break When Purchasing Commercial Real EstateDepreciation
Commercial buildings go through wear and tear, and this leads to depreciation. As a result, the IRS permits owners and investors to write off depreciation as a tax deduction for commercial properties.
Similar to mortgage interest, depreciation claims can reduce taxes due to profits.
A Cherokee county commercial real estate agent will explain how to leverage depreciation deductions.
Tax Benefit from Non-Mortgage Expenses
A commercial property requires extensive maintenance, which is labor-intensive and expensive. Most of the costs related to this maintenance are tax deductible. They include maintenance, repairs, upgrades, condo fees, and management expenses.
However, please note that: only some are eligible for these expenses. For example, condo fees require the investor to reside or work on the property. Before purchasing a Cobb county commercial real estate for sale, a real estate agent will explain the nuances of these expenses.
Tax Benefit from Capital Gains
Some business owners purchase commercial real estate to build an asset they can use after retirement. One potential advantage is a lower capital gains tax rate.
When withdrawn, IRA profits are taxed at an individual rate. In contrast, the tax rate on capital gains from selling a commercial property is typically lower.
Invest in a Clayton county commercial real estate for sale early to maximize returns when you retire to take advantage of this tax benefit.
Tax Benefit from Qualified Business Income Tax
Suppose you work in the real estate industry and have been profitable this past year. The recent Tax Cuts and Jobs Act enables firms to claim Qualified Business Income to receive an additional twenty percent tax cut.
It’s not too late to enjoy this. Invest in a Gordon county commercial real estate for sale today!
Are You Ready to Enjoy a Tax Break When Purchasing Commercial Real Estate?
At Brenda McLean, we have a commercial real estate listing waiting for you. We shall also guide you on all the benefits you can accrue simply by becoming a property owner.
Check out some of our listings below:
- Assisted Living
- Industrial Warehouse
- Student Housing
For these and more, reach out to us today. We are the best Georgia realtor near you!