Currently, a valuable income tax deduction related to business real estate is for depreciation. But the depreciation period for such property is long, and land itself isn’t depreciable. To maximize your deductions, first segregate personal property from buildings; depreciation deductions for personal property generally can be taken more quickly. Next, carve out depreciable land improvements from land. Examples include landscaping, roads, and even grading and clearing. For more details or other tax-saving ideas for business real estate, contact us.
Author: Jeff Lucke
Jeff Lucke, CPA, is the founder of Lucke & Associates, with an entrepreneurial background. Jeff has had ownership interests in businesses within several industries including automotive, construction, healthcare, telecommunications, and restaurants, as well as being active in real estate. As an owner of a growing CPA firm and other businesses, he has gained unique insights into the challenges and issues that face other growing businesses that most other CPAs do not have. This kind of knowledge ultimately benefits every one of the firm’s clients. He is very involved with clients and becomes deeply involved in their businesses and helping them succeed. Jeff is a graduate of the University of Nebraska and holds a Bachelor of Science in Accounting; his professional affiliations include the AICPA and KSCPA. Jeff currently serves a board member for his community on the Construction Financial Managers Association, the American Diabetes Association, and Big Brothers Big Sisters.