Commercial Tax Breaks Top Investment Incentive

Commercial Tax Breaks Top Investment Incentive

Purchasing commercial real estate can be a costly venture, but, a variety of tax breaks and deductions are in place to get instant relief.

Since 1986, the tax law has provided long-term tax write-off opportunities for investment in commercial real estate. Although the price given to the land cannot be written off against your taxes via depreciation, building improvements are another story. Structural improvements to commercial buildings can be deducted based on a 39 ½ years depreciation schedule. On the other hand, improvements not permanently affixed, such as partition walls, air conditioning units and carpeting can be written off as quickly as 7 years. Sidewalks, fences, stone, signs and benches are all included under the land improvement umbrella and are eligible for 15-year write-offs.

There are also tax advantages for improving the energy efficiency at a property. Qualified projects can receive various deductions at the state and federal level that may include HVAC, water systems and interior lighting.

There are also additional incentives available to developers interested in revitalizing parts of the country. Detroit, for example, offers businesses planning expansion and relocation kickbacks for moving operations to the financially challenged city. Buffalo, NY has rebuilt its economy into a bustling metropolis based on New York state tax breaks drawing investors in every industry to solar energy to the medical field.

Whether you own shopping centers, office parks or industrial properties, you can take advantage of commercial real estate tax breaks. You can often times offset the income you earn from investment properties with the right tax deductions. With some research into the specifics of tax deductions, you can get the most out of your commercial real estate property.

 

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The information contained on this website does not constitute legal advice or tax advice. Its authors make no claims about its accuracy, completeness, or up-to-date character and that applies to any site linked to this website as well. No author or owner of this website is acting as your attorney. Legal rules and tax rules change frequently, therefore, we cannot guarantee that any information on this web site is accurate or up to date.

Nothing on this website should be viewed as tax advice nor is any information on this site intended to be used for the purpose of state or federal tax penalty protection. Furthermore, the information on this site may not be used in connection with the marketing of any state or federal tax plan under any circumstances.

The law varies widely from jurisdiction to jurisdiction, and it is subject to varying interpretation. Legal advice, including tax advice, must always be tailored to your circumstances, and nothing on this web site should be viewed as a substitute for the advice of a competent attorney.

Written by Mark Mascia

Mark Mascia

Mark has the overall responsibility for managing the investment and operating activities of Mascia Development.

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