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How Business Owners Can Maximize Tax Savings by Purchasing Their Own Commercial Spaces with Marcus Mire
Manage episode 407249815 series 3559097
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In this podcast episode, Marcus Mire and Paul Neal discuss the advantages and potential growth opportunities for business owners who choose to purchase their own commercial properties. They delve into the tax benefits involved and how this strategy can contribute to long-term financial gains.
Marcus begins by explaining the concept of cost segregation studies, which can help business owners take advantage of accelerated depreciation, leading to significant tax savings. This strategy, often used by real estate investors, can be a powerful tool for business owners who own their commercial buildings.
To help listeners better understand the process, Paul asks Marcus to break down the concept using a simplified example. Marcus describes how a business owner can use depreciation deductions and related expenses to create tax savings, which in turn can be used to offset operating business income.
Furthermore, Marcus shares insights on maximizing tax savings by accelerating depreciation through cost segregation. By identifying assets within the building that can be written off faster, business owners can generate even greater tax savings and transform their property into a cash flow vehicle.
Despite the potential benefits, Paul notes that many business owners are unaware of the advantages of owning their commercial spaces. Marcus acknowledges that concerns about growth can deter some business owners but emphasizes the potential benefits of owning real estate for both cash flow and appreciation.
The conversation shifts to the topic of inflation, with Paul and Marcus discussing the long-term benefits of owning commercial real estate, including hedging against inflation and potential appreciation. Owning a commercial property can also help a business avoid rent escalations from landlords.
Lastly, Paul brings up the idea of purchasing a larger building with the expectation of future business growth. Marcus supports the idea, especially for those with experience in real estate, as it provides a pathway for growth while leveraging the financial benefits of property ownership.
Overall, this podcast episode highlights the benefits of business owners investing in their own commercial properties, including tax advantages and potential growth opportunities. By understanding the real estate market and leveraging tax strategies, business owners can maximize their financial gains and set their businesses up for long-term success.
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