Leverage Your Commercial Real Estate in Year End Tax Planning & Strategy - ELB Consulting

Reduce your tax burden and improve cash flow, to grow your Commercial RE holdings, or further invest in your company

The year is closing out, though there is still time to identify substantial tax deductions associated with your property to apply to your 2018 federal taxes, if you anticipate a tax liability in March or April, the time to act is now.

If you own commercial real estate (CRE) with improvements valued at $500,000 or more, there may be real opportunity to reduce your 2018 tax bill. You don’t need a $50,000,000 portfolio to benefit. A single office condo, restaurant, or rental duplex can qualify.

Acquired, newly built or improved property after September 27, 2018, qualifies for Tax Cuts and Jobs Act (TCJA) 100% Bonus Depreciation. This is an added boost to your federal tax incentives. This is not for new 2018 properties, cost segregation can be applied properties up to +/-10 years old that have never had a study completed.

Through a cost segregation study, commercial property owners essentially get an interest free loan from the I.R.S.

Not sure your building qualifies? Essentially all types of CRE can qualify; office buildings, medical facilities/offices, hospitals, multi-family apartments, shopping centers, restaurants, auto dealerships, car washes, golf courses, industrial/flex space, self-storage, residential single family rentals, and many more not listed here.

Font Resize