Do you realize that the government and IRS allows commercial property owners to maximize their cash flow based on the commercial property they own? Most people dont! By completing an engineering based study on their property, a commercial property owner can recoup $150,000 per Million they spent on their property in the next 5 years. When a property is bought, it is set up to depreciate in a straight line method for 39 years! Who wants to wait 39 years to enjoy the benefits of that depreciation? Commercial property owners are encouraged by the IRS to accelerate the depreciation and use that cash flow NOW! The process is simple and pain free!
If a commercial property owner does accelerate the depreciation on their property and sells the property down the road, most people assume they will be stuck with capital gains taxes! The fact is- those taxes can usually be avoided by the 1031 exchange process.
This is a no brainer for anyone who owns commercial property. The sad thing is most property owners are unaware because their CPA is not an engineer and not qualified to bring this service to their client base.
I would love any feedback from commercial agents out there!
Comments(0)