Its hard to believe we are at the end of another year! Most people I
know agree that 2009 reminded us of many important economic lessons we once
learned, especially with respect to cash flows and borrowing!
Still,
2010 and beyond promises to continually be a buyers market. That means
commercial business operators should make sure they take advantage of that
wave. Be careful but be decisive in 2010 and ask for help when and where you
need it. There are some great professionals still out there providing
incredible value!
Costly Mistakes To Avoid When Working With Agents On Commercial Property
Transactions
Business operators looking for space are
often extremely concerned with their overall occupancy costs when looking
for new space. Who can blame them, especially in this economy.
Some of their cost concerns also relate to
how much more they would need to pay in order to use a tenant broker.
With good tenant broker representation, the value analysis of using that
broker should more than pay for itself. It does many times over in
over 95% of the cases. The reason is that the tenant brokers fee is
paid out of a commission split with the leasing agent, just like in
residential brokerage. As a result, I strongly recommend tenants find
a broker who the like and trust since that service is built in to the
transaction in many cases.
That begs another question, "Who represents
who and how can a tenant make sure their interests are fully represented?"
In answer to this question I have posted a
short video posting that discusses tenant broker representation, click below
(or here):
How To REALLY Save Thousands of Dollars On Your Commercial Real Estate
If you have real property with costs
of $500,000 or more, purchased after 1986, you may be missing an opportunity for
substantial tax savings!
Do you own depreciable
real property? Are you constructing or purchasing real property? Are you
expanding your existing facility? Do you have extensive leasehold
improvements?
If you answer yes to any one of these questions,
there is a service that I provide that could save you a significant amount of
taxes! The service I am speaking of is a Cost Segregation Study.
This is
a little known process designed to legally recapture thousands of dollars using
a qualified professional to perform this special study.
What is a cost
segregation study and what is it worth? A cost segregation study is an analysis,
using an engineering approach acceptable to the Internal Revenue Service, to
reclassify costs from the long depreciation lives of 27, 31 and 39 years to 5, 7
and 15 years. The benefit of a study is the net present value of tax
savings generated as a result of accelerating depreciation expense.
This amount can be significant meaning tens of thousands of dollars in many
cases.
Studies are done not only for property being
currently purchased or constructed or improved, but also for buildings placed in
service as early as 1987. Taxpayers can reclassify costs that qualified for
shorter lives and can catch-up those missed deductions immediately. You do not
have to spread the missed deductions over four years anymore. As you can
imagine, these amounts are usually quite large and result in big tax savings.
The Internal Revenue Service has made it clear, through various rulings,
procedures and court cases, that they will not accept anything less than a Cost
Segregation Study using a construction and an engineering approach. My study is
comprehensive and well documented and in the format acceptable to the Internal
Revenue Service.
By Richard A. Blum, CPA, JD, LL.M.
Please call Mr. Blum directly
at (704) 770-8790 or e-mail at Rblum@carolina.rr.com if you would like to
further discuss these cost segregation studies or if you have any questions.
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Contact Information
Rob Cassam,
MBA, CCIM Carolina Realty Advisors
201 W. Morehead St. Suite 200
Charlotte NC 28202
Tel: (800) 587-4066 Ext. 100
Fax: (704) 442-8841 robcass@ix.netcom.com www.charlotteNCproperty.com
What I do...
I
provide
real estate brokerage services for small and medium sized businesses, investors,
and individuals who are fed up with loosing money, paying too much, spending too
much time not getting the right piece of property for their particular
situation.
I act as the quarterback in the real estate transaction for my clients who coach
me in managing all of their different needs.
My clients love not needing to worry about making bad decisions or bad
investments and love winning negotiations.
Ask yourself these questions:
What types of growing pains is your company facing with your location?
Are rising occupancy costs a challenge your company is facing?
Is having too much space or not enough space a challenge your company is
facing?
How much of a problem is dead equity in your property for you?
How long are you prepared to go on doing nothing about situations in
your business that are not quite right?
Give me a call, I may be able to help with your lease or purchase!
