Law Office of Ryan S. Shipp, PLLC

How tax reform helps CRE investors

Florida residents may not all agree with the tax cut proposed by the GOP. Some who study the issue believe that it is generally better to have a stronger economy and higher taxes as opposed to lower taxes and a weaker economy. However, the bills may provide ways for those who own commercial real estate to make a profit. Those who are single tax filers and make less than $157,500 may be entitled to a 20 percent tax reduction.

This is generally true if they hold that property in a pass-through entity. Those who make more than that amount may also have ways to save on income taxes incurred because of commercial real estate investments. The limit for joint filers is $315,000. According to one individual from the Urban-Brookings Tax Policy Center, the industry will have "hit the jackpot."

There by many ways in which a person may profit from commercial property. For instance, an individual may buy shares in a REIT or similar equities to gain exposure to this sector without having to buy a building. It may also be possible to become a lender for those wishing to develop commercial real estate projects. This may allow an individual to see a return on that investment without having to be directly involved in the project on a daily basis.

Regardless of how a person wants to invest in a commercial property, it may be a good idea to research an opportunity thoroughly. This may be done by talking with an attorney or other consultants. Taking this step may all a person to learn more about the financial and legal ramifications of the project. An attorney may be able to review a purchase agreement or resolve any zoning or similar disputes that may arise.

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Law Office of Ryan S. Shipp, PLLC | 814 W. Lantana Rd., Suite 1 | Lantana, Florida 33462 | Phone: (561) 699-0399 | Map & Directions