RENT Magazine Q4'23

CONSEQUENCE #2

CONSEQUENCE #3

2.

3.

Losing Out on Competitive Edge

Neglecting Wealth-Building Potential

In the fiercely competitive landscape of commercial real estate, investors are constantly seeking ways to gain an edge. Bonus depreciation can be a potent weapon in your arsenal. By leveraging this tax incentive, you can structure deals more advantageously, offering attractive terms to potential tenants or buyers. In a world where every negotiation counts, missing out on bonus depreciation could put you at a disadvantage. Furthermore, savvy investors who harness bonus depreciation can improve their property's financial metrics, making it more appealing to lenders, partners, and stakeholders. This competitive edge can open doors to lucrative partnerships and financing opportunities that would be otherwise out of reach.

Wealth accumulation in commercial real estate is not just about property appreciation but also about intelligent tax planning. Bonus depreciation can be a powerful wealth-building tool, allowing you to shelter a significant portion of your rental income from taxation. Over time, this can translate into substantial savings and wealth accumulation, which would be significantly hampered if you miss out on this tax benefit. Moreover, bonus depreciation aligns perfectly with the long-term nature of commercial real estate investments. By reducing your tax liability today, you can reinvest those savings to secure more properties, further diversifying your portfolio and compounding your wealth- building potential. Think about it, would you rather get your tax savings today or spread out over a number of years? The answer is simple!

BONUS DEPRECIATION CAN BE A POWERFUL WEALTH-BUILDING TOOL.

BONUS DEPRECIATION IMPROVES YOUR PROPERTY'S FINANCIAL METRICS.

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