Real Estate Depreciation Benefits

Ankur explains how to leverage real estate ownership through your business to create significant tax advantages, particularly through depreciation benefits.

Key Points:

• Buy Real Estate Through Business:

  • Purchase office buildings or retail locations used by your business
  • Own the property instead of renting
  • Can apply to any physical building connected to business operations

• Tax Benefits:

  • Use depreciation to offset 20-30% of purchase price as business loss in first year
  • Reduces taxable business income significantly
  • Benefits enhanced by Trump's Tax Cuts and Jobs Act
    • Added 20% qualified business income deduction
    • Allowed "bonus depreciation" for real estate developers

• Additional Vehicle Benefits:

  • Can apply similar strategy to business vehicles
  • Vehicles over 6,000 pounds qualify for higher depreciation
  • Creates the "G-Wagon tax write-off" opportunity

• Long-term Value:

  • Property often becomes worth significantly more than the business
  • Creates dual benefit of tax advantages and asset appreciation
  • Common strategy among successful small business owners