Some Commercial Real Estate Tax Benefits


tax benefits

When you buy commercial real estate, there are many associated responsibilities with property ownership. One of the most important of these is filing the proper tax paperwork with the state (where applicable) and the federal government. However, there are also many tax benefits commercial property ownership brings. 

Three Tax Advantages When You Own Commercial Real Estate 

There are many write-offs, deductions, and calculations for capital gains and business income as it relates to your business taxes. Below are three of the most common write-offs you can claim. However, there are many additional ones not listed so it is best to always consult an expert.

  1. Interest Deductions: when you buy a commercial property, often there is an associated mortgage you will be paying monthly. Like any other bank loan, commercial mortgages carry interest. Luckily, any interest payments you make during the tax year can be totaled and claimed as a tax deduction on your return.
  2. Deprecation Deductions: an important bookkeeping aspect of any business is depreciation of physical assets owned. This includes not only business equipment but also property. Currently, the IRS allows depreciation to be claimed for a commercial property for 39 years in total.  
  3. Operating Expense Deductions: another broad area of credit you can claim relates to various expenses you may incur during routine commercial property ownership. This includes costs such as those for upkeep, repairs, management expenses, etc. This also extends to personal expenses related to property ownership. Expenses can include things like travel costs when going to the property for business purposes and associated real estate education such as seminars and conventions. 

Contact Harkins Commercial Real Estate

With many years of experience in Sanford and the surrounding areas of commercial real estate, the experts at Harkins Commercial Real Estate can provide you the advice and guidance you need to properly manage your commercial property. Contact us today to learn more about your tax benefits!

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