Commercial Real Estate Investing: Big Tax Benefits

Commercial Real Estate Investing: Big Tax Benefits

There are some significant benefits derived from real estate investments that go beyond acquiring the property itself, and any income which is generated by that property. When making a commercial real estate investment, you’ll have the potential to take advantage of some terrific real estate investment tax deductions. There are a great many of these deductions made available by the federal government, and if you know beforehand what might be available to you, you’ll be able to maximize your deduction benefits.

Real Estate Tax Deductions

Tax write-offs which are geared toward rental properties, generally include costs associated with operating expenses, property tax, depreciation, maintenance and repairs, and mortgage interest. As a property manager or owner, you can deduct all expenses involved with maintaining and managing the property. Since repairs are necessary to keep a property in optimal condition but don’t really add value to it, investors are allowed to write off all repairs such as painting, plumbing repairs, building repairs, lawn-mowing, snow-plowing, and electrical repairs.

It’s also possible for investors to deduct mortgage interest on their primary residence, and sometimes their secondary residence as well. This deduction specifically covers home purchases or mortgages which have been newly refinanced, home equity loans, and home equity lines of credit. To make the most of your real estate tax deductions, it’s important that you itemize all those deductions in a very detailed manner, so it’s clear how the deduction is being claimed.

Remember that you can also take a deduction for using your home as your real estate office, and in some cases, you can also deduct work expenses such as your phone bill and Internet provider cost.

Are You Thinking of Investing in Commercial Real Estate?

If you’re thinking of making an investment in commercial real estate, we may be able to assist financially. Contact us at Drawbridge Capital so we can discuss some options which may be available to you.