CXRE » Tax planning

Cost Segregation for Accelerated Depreciation

The Benefits of Cost Segregation for Accelerated Depreciation Clients often ask us about the benefits of cost segregation for commercial office buildings, bonus depreciation, and other methods to minimize their tax liability. Using cost congregation for accelerated depreciation is one of the methods savvy commercial real estate investors use to limit their taxable income. Commercial real estate depreciation can be confusing, but you can amplify the depreciation on an office building by closely following the updated tax codes. Here’s a quick video from our friends at The Anderson Group explaining cost segregation for accelerated depreciation. What is Cost Segregation for Accelerated Depreciation? First, let’s define some of the terms we’re talking about here: Depreciation In real estate, depreciation refers to the loss of an asset’s value over time. Most real estate suffers from normal wear and tear over the years, making it less valuable as it ages. Therefore, the IRS allows commercial property owners to […]

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10 Commercial Real Estate Investing Mistakes (And How to Avoid Them)

Commercial real estate investing has long been a dependable wealth-building tool. Over time, CRE investments tend to perform the same as – or better than – stock market investments. Plus, real estate is often less volatile and less prone to dramatic fluctuations. However, just as with any investment, commercial real estate comes with inherent risks. Mitigating these risks comes down to knowing the most common mistakes and understanding how to avoid them. 10 Common Commercial Real Estate Investing Mistakes (And How to Avoid Them) There is no right or wrong investment, but there is a right and wrong investment property for you. 1. Choosing the Wrong Property Type There are many types of commercial real estate, but the four “main food groups” are Office, Industrial, Retail, and Multifamily. Investors can also purchase raw land, mixed-use properties, special use properties, even storage units and RV parks. Each property type is unique – not only in its […]

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