San Francisco-based tax attorney, Steve Moskowitz, reveals how investors can get the new tax code to work for them.
SAN FRANCISCO, California (May 16, 2018) – As a commercial real estate or short-term rental owner, your primary concern is managing, maintaining, and growing your investment. Did you know that the new tax law could reward you for doing so? Recent changes set in motion by the new Tax Cuts and Jobs Act means a brighter outlook for commercial real estate owners and investors. If you took (or are considering) any of the following actions this year, you may be able to benefit big:
- Do you own property through a partnership, LLC, or S-Corp? The new tax law allows title holders of pass-through entities to deduct up to 20 percent of their qualified business income, with even more possible deductions for capital expenditures. There are certain limits and restrictions in place for these deductions, and the pass-through provisions are quite complex, but there are huge potential savings available to real estate investors who carefully plan for these opportunities if they qualify.
- Are you looking to make a new commercial property investment? You may be able to fully expense the purchase, with bonus depreciation and the immediate deduction of 100 percent of the qualifying expenditure that otherwise would be depreciated over a period of years. Used properties are also now considered an eligible purchase. This is great news for the real estate industry, with the potential to create greater income due to fewer taxes for investors who qualify.
- Are you planning to make property improvements? It is now possible to expense certain eligible otherwise depreciable, tangible property improvements (such as roofs, HVAC, fire protection, alarm and security systems), and the amount allowed to be expensed has doubled from $500,000 to $1 million under Internal Revenue Code section 179, for those who qualify and unlimited 100% expensing for those assets that qualify for “bonus depreciation.” This results in huge savings for many commercial properties and short-term rental owners, as long as you follow the appropriate guidelines and restrictions.
The tax attorneys at Moskowitz LLP are a valuable resource to help you uncover the opportunities that come with the new tax law. For more than three decades, the highly experienced, knowledgeable tax attorneys at Moskowitz LLP have advised hundreds of businesses, individuals, and real estate investors through the complexities of the changing tax codes, with the goal of creating a tax-advantaged investment. They are ready to help you strategically navigate the new tax law so you can benefit the most.
About Moskowitz LLP:
Tax attorney, Steve Moskowitz founded what would become Moskowitz LLP over 30 years ago, a tax law firm offering clients a full variety of services that include domestic, civil, international, and criminal tax law representation, tax planning, and tax preparation of current and delinquent tax returns. Having practiced as a CPA before becoming a tax attorney and also working for a “Big 8” (now “Big 4”) firm, as well as teaching tax, law, and accounting at the nation’s most prestigious universities, Steve has served as an expert legal analyst for top media outlets, where he appears daily on the radio and weekly on TV. Steve knows his profession inside and out, and his message is simple: Don’t go it alone against the IRS. Passionate about helping clients navigate the complex intricacies of tax law, Steve practices as the founding partner of Moskowitz LLP in San Francisco, overseeing a growing team of accomplished tax attorneys and accountants. Contact us today.