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.
What Tax Cuts Should You Be Aware Of?
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.
How to Know If Your Building Qualifies for TCJA
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.
You may be missing out on tax benefits.
Own commercial property?
We can help you find smarter ways to depreciate your property and reduce your taxes. Tell us about yourself and we’ll see how much you could be saving.