Tax Benefits of Commercial Real Estate

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  • čas přidán 20. 08. 2024

Komentáře • 154

  • @CommercialPropertyAdvisors

    Discover how you too can use these powerful tax benefits for your own commercial real estate. Learn more about our Protege Program here: www.commercialpropertyadvisors.com/protege-program

  • @thebestken
    @thebestken Před rokem +5

    I've never seen a teacher like him. He is a Gem when it comes to understanding real estate concepts.

  • @sailakshman9
    @sailakshman9 Před 6 lety +31

    I can only say that you are the best real estate teacher I have ever had! You are encouraging me to stay in this field and advance my skills.

  • @89DrFunk
    @89DrFunk Před 7 lety +31

    Dam....My mouth is to the floor on the 3rd column of the rules to comm real estate game....Wow! I have a totally new outlook on the real estate business.

  • @CEsquivel91
    @CEsquivel91 Před 7 lety +24

    The way you make the information so relatable is great. Well done!

  • @moirabaggett9501
    @moirabaggett9501 Před 3 lety +1

    Mr. Harris, THANK YOU, SIR!!!!!
    You are the BEST Commercial Real Estate teacher anywhere in the USA!!! Thank you again.

  • @bles1984
    @bles1984 Před 7 lety +4

    This was an EXCELLENT presentation, Peter. I will be purchasing my first commercial property within the next 90 days. ALL of your videos, particularly this one, have been instrumental in shaping my mind as a commercial real estate investor.

  • @Oscar-ge8sp
    @Oscar-ge8sp Před 3 lety +2

    You have done more for me in a few videos than the 12 years I spent in the public system. I was hungry for this knowledge, thank you 🙏🏼

  • @gyver471
    @gyver471 Před 7 lety +5

    Wow you are the absolute best. I literally believe if you dropped $100 bill you would be wasting your valuable time picking it up. Great job explaining things👌🏼

  • @winningtennis4914
    @winningtennis4914 Před 6 lety +4

    Peter, Thank you SO much for your dedication to educating us. My wife is full time Real Estate Now, and we are shopping for our very first deal. And you are a huge reason why. Thank you so much again!

  • @adamholbrook2281
    @adamholbrook2281 Před 4 lety +2

    Excellent information. I’m not sure if the laws are still the same, but the principal is the key!

  • @summercoat8122
    @summercoat8122 Před 7 lety +1

    I just read about this in my desk book. All the more reason to get a property in May when I graduate from school.

  • @Kolob_Canyons_Ranch
    @Kolob_Canyons_Ranch Před 5 lety +3

    Thank you for this Peter! This is huge. I just paid almost 50% of my 2018 income =O

  • @TerrySmith-fo3qe
    @TerrySmith-fo3qe Před 5 lety +2

    Thanks Peter for great videos and information.,...its much appreciated. Can you look at the 2018 and 2019 tax reform and give a video on the similarities and differences of this 2016 US tax benefits and requirements...

  • @85Rossco
    @85Rossco Před 3 lety +1

    My wife says Amen on the housewife role being most difficult!

  • @SpiritualMother
    @SpiritualMother Před 6 lety +3

    This was THE BEST teaching on the beni's of the real estate game I've seen. Thanks for being awesome! XoXo Miki

  • @Wrathofreason
    @Wrathofreason Před 3 lety +1

    Caveat to this tax write off approach. My wife and I wrote off about a $100k write offs last year and couldn't refi our home because when we went to the banks that loss went against our income even though our income didn't go down. Just a note...

  • @dakotaj614
    @dakotaj614 Před 6 lety +3

    Wonderful information in your videos. Keep teaching and inspiring others

  • @tinyalewis7991
    @tinyalewis7991 Před 3 lety +1

    Can’t wait to make the full transition

  • @RealEstateRadioTV-SA
    @RealEstateRadioTV-SA Před 5 lety

    Thank you Peter, You certainly called to be a Teacher /Speaker/Exhorter.
    My apologies for not commenting previously. You put such a great work, the least I can do is to encourage you and bless you with my words.
    Regards
    Gaven Malope
    South Africa.

  • @vinafoto22
    @vinafoto22 Před 7 lety +1

    Wow this guy is the real deal! He is on top of his game. Thanks for sharing this videos!!!

  • @GusApproved
    @GusApproved Před 4 měsíci

    Great video, has anything changed since you've posted this video? If so would you be willing to make an updated video? Thanks again for the education!

  • @Cooleyobass
    @Cooleyobass Před 7 lety +1

    great video ! really appreciate your version and how you made it so simple for understanding. thanks

  • @youtubechannel9035u2
    @youtubechannel9035u2 Před 7 lety +1

    I am buying an llc that owns commercial real estate. I don't want to trigger any "due on sale" clause, because I'm not sure I can "borrow" additional money if I don't qualify to assume the existing mortgage.
    Here's the bigger picture; the llc owns 6 buildings. 3 are owned free and clear, 3 have assumable mortgages. The seller has accepted our offer to purchase his llc. If I purchased just 3 properties, the income from the buildings would not cover the operating expenses and debt service, (I'm using hard money). However if I buy all 6, and keep the existing financing in place, It's all affordable. (if I used "hard money" to buy all 6 it would not be affordable). How can I buy the llc and keep the existing financing in place, without having to qualify to assume the mortgage? Can it be done? Do I buy a membership share in the llc first, then within 6 months buy out the other member?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety

      We do that all the time. Buying an LLC is a few simple documents. The issue is that you have to have the cash to pay for the LLC purchase. Obtaining a business loan to purchase the LLC is a different ball of wax altogether.

    • @youtubechannel9035u2
      @youtubechannel9035u2 Před 7 lety

      Commercial Property Advisors Thankfully, I already have the financing for the purchase. We are purchasing for $28,000,000.00 & assuming $29,500,000 in mortgage debt. I just want to structure the deal so the mortgage debt remains, without me having to qualify to any great degree. I've spoken with some brokers who make it sound impossible.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +2

      It'll depend on the loan documents; but technically, buying a membership in LLC is not a change in title so it wouldn't trigger a due on sale clause. However, commercial mortgage notes drafters are sometimes smart enough to include language that would consider a sale of the membership of the LLC to trigger the due on the sale. Furthermore, you should be connecting with an intelligent real estate attorney for a deal of this size and they can usually sort out such details.

    • @youtubechannel9035u2
      @youtubechannel9035u2 Před 7 lety

      Commercial Property Advisors I do have an attorney working on the sale. I want to learn what's going on behind closed doors and participate as much as possible. This isn't going to be the last purchase in my investment career, the more I learn about the process the better off I'll be. My partner and I enjoy listening to the information you share.

    • @aboy6974
      @aboy6974 Před 7 lety

      Does this apply to residential real estate also or only commercial real estate?

  • @cre_datch
    @cre_datch Před 7 lety +1

    Thank you for sharing this knowledge. Much Respect!!!

  • @citywayinsuranceservices486

    Great content Peter, enjoyed

  • @joshhoward1289
    @joshhoward1289 Před 3 lety

    Hilarious to hear you describe the solution as getting married! Lol. Great video, well done!

  • @alstenmart
    @alstenmart Před rokem

    It seems Peter is missing CRE mortgage for the second column? Don't you write off interest rate on your commercial property loan too if you have W2 and some real estate??

  • @acuracy00
    @acuracy00 Před 7 lety +1

    How would this work for two "single" brothers that are in the real estate business and work full time seperate careers?

  • @dagreeneyedbastard9298
    @dagreeneyedbastard9298 Před 7 lety +2

    I am dumbfounded and speechless

  • @mekaylagresham725
    @mekaylagresham725 Před 4 lety

    Thank you. I purchased your book and received it today 🙏🙏🙏

  • @docimma
    @docimma Před rokem

    Dr Rob example… can children be the real estate professionals if Dr Rob is unmarried but has two kids and no alimony and child sppt (to keep example clean)? Im working on the protege videos :) So much fun learning.

  • @aungkay8071
    @aungkay8071 Před 4 lety +1

    Welcome to the club! 😁

  • @jdmxxx38
    @jdmxxx38 Před 2 lety

    Wow. How much I did not know.

  • @ohizuarussel592
    @ohizuarussel592 Před 6 lety +1

    This is great information thank you!!

  • @ranyen482
    @ranyen482 Před 3 lety

    So would you say it’s still better to own commercial real estate even if you are not making any money on it?

  • @DeekonJones
    @DeekonJones Před 3 lety

    Soooo I can make less than $150,000 I am my full-time job, and still take it vantage of being a real estate professional?

  • @7gmang
    @7gmang Před 7 lety +4

    exellent info..

  • @DarrylMurphysr
    @DarrylMurphysr Před 6 lety +1

    Will an update be posted due to the new tax news?

  • @seanmacoy1952
    @seanmacoy1952 Před 3 lety

    Can both spouses making over $150k/yr max qualify as RE professionals in their spare time as long as they meet the RE professional status requirements?

  • @robertoinvests
    @robertoinvests Před 3 lety

    great recommendations..so refreshing!!!

  • @selflove96
    @selflove96 Před 2 lety

    Thanks for sharing 👍

  • @ansypierre7285
    @ansypierre7285 Před 4 lety

    How are you able to write off the car? Lease vs Monthly payment vs Own

  • @brandoncollins3740
    @brandoncollins3740 Před 4 lety

    Depreciation (fiscal) passive loss.

  • @Mazel_Tov_888
    @Mazel_Tov_888 Před 7 lety +5

    I left my job. I have lots in 401k. Can I buy RE then use the losses to reduce my taxes, not including 10% penalty? Would that be recommended knowing the volatility of the stock market?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +3

      Why not consider transferring your 401K to a Solo/Indy 401K? This video explains: czcams.com/video/x8BRlbAbOiM/video.html

    • @Mazel_Tov_888
      @Mazel_Tov_888 Před 7 lety

      already watched that video. problem is all profits go back to solo401k. purpose is to get monies out to jump start RE venture. once I have one property cash flowing then I use that as leverage to get approved for more loans.

  • @DonMartoneMoves
    @DonMartoneMoves Před 7 lety +1

    epic video guys thx!!!!

  • @lopplane8762
    @lopplane8762 Před 7 lety +1

    great video

  • @hystocyntoma229
    @hystocyntoma229 Před 7 lety

    Beautiful video, thank you Mr.Peter

  • @keishapelote1814
    @keishapelote1814 Před 6 lety

    Peter your the best thank you keep the videos coming

  • @jsiv0511
    @jsiv0511 Před 5 lety +1

    Thank you. 🙏

  • @480brad
    @480brad Před rokem

    Great video!

  • @chanelbags1023
    @chanelbags1023 Před 4 lety

    Still trying to understand.. Thanks for the info

  • @kansophano
    @kansophano Před 3 lety

    Thank you for this great video

  • @Emmanuel-jf7xf
    @Emmanuel-jf7xf Před 4 lety

    Awesome presentation my brother. So proud of you as always!!! What if you are filing "Single" does the same rule apply for the deductions? Is the $150K limit same for single filing, or is it $75K limit for single filing status?

  • @MrHav1k
    @MrHav1k Před 6 lety +2

    I gotta wonder when these tax laws went into effect and who set them up because this sounds backwards as hell, but is perfectly legal. Like a tax code written by real-estate investors for other investors going back several decades rigging the game in their favor.

    • @ApartmentKing66
      @ApartmentKing66 Před 6 lety +3

      What you cynically call "rigging the game in their favor," the government calls "encouraging investment and entrepreneurship." You sound like you have a problem with it. Instead of complaining about it, invest in real estate and enjoy the tax benefits, the cash flow, the buildup of equity, and everything else that comes with it.

  • @jeancarbone209
    @jeancarbone209 Před 3 lety

    I know I am late to the party here, but it's a great video anyway. My only objection is referring to legal tax deductions as "loopholes" It implies that someone is doing something Congress and the law did not intend. The law is there to create incentives for people to invest.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 3 lety +1

      Sometimes there are unintended consequences of tax code that really are loopholes. But I agree with your point. Thanks for sharing.

  • @killerbadger69
    @killerbadger69 Před 7 lety

    Thanks for sharing Peter!

  • @vandacrossley5026
    @vandacrossley5026 Před 7 lety

    Great information Peter, thanks.

  • @AverageDadSavesMoney
    @AverageDadSavesMoney Před 7 lety

    Why can't #2 have business write-offs? I have a full time job and my CPA allows me to write off meals, cell phone, internet, miles, conventions, training, etc..

  • @morrisrdfarms9233
    @morrisrdfarms9233 Před 5 lety

    Well how would I make my income equal zero with wright offs. I mean wouldn't that mean I wouldn't be able to do anything that doesn't relate to my business

  • @timmy101able
    @timmy101able Před 5 lety +1

    Do depreciation of the property and write off of the interest on the loan count as loss’s that can be written against cash flow?
    -
    -also how do you define yourself as a real-estate professional? How many hours a week must you work to qualify?

  • @kerryarmstrong5565
    @kerryarmstrong5565 Před 3 lety

    Just bought my first duplex was wondering where I can get your free book?

  • @johnh1852
    @johnh1852 Před 7 lety +1

    Great channel with quality content I only have one question it the depriciation your cash flow?

  • @judyhernandez7638
    @judyhernandez7638 Před 6 lety

    Would owning raw land for future development/inventory, investment qualify for the 3rd bracket?

  • @JackieMoss
    @JackieMoss Před rokem

    good save at 17:46. HA HA HA

  • @stevenw373
    @stevenw373 Před 7 lety

    Wow awesome content thank you!

  • @otimmo
    @otimmo Před 7 lety +1

    When I go to the county auditors web site to look up the last appraisal value for a multi-fam property often times it's considerably lower than the asking price. Asides from using a master lease agreement, is there a way to still give the seller their asking price but keep the appraisal value as is?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety

      Are you referring to the idea of purchasing a property for significantly more than the tax appraisal but to do so in such a way that the taxing authority doesn't raise the tax appraisal as a result of the transaction?

    • @otimmo
      @otimmo Před 7 lety

      Yes.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +1

      Master Lease or Quitclaim into a Trust or LLC and then purchase the interest in such Trust or LLC.

  • @paintedskyproperties6128

    In your scenario #2 (F/T Job, some R/E), you mention the ability to have R/E write-offs for $100K and under earners, while none for $150K+. What about for those in the middle - $100,001-$149,999?

  • @paulpena9548
    @paulpena9548 Před 7 lety

    Peter, thank you for the video. There is one thing that is confusing me. If Dr Rob's RE business shows a paper loss of 90k and cash flow of 82k, isn't the 82k sheltered from tax but he cannot use the remaining 8k (90-82) of paper losses against his job income (250k) without the RE professional designation? The way you presented it sounds like he'd still have to pay tax on the 82k even though the business took a loss for the year.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +1

      You are correct Paul and my intent was not to say the opposite. The $82k is "tax free" because of the $90K in paper expenses. That additional $8,000 in paper losses would carry forward.

  • @davidrenner5120
    @davidrenner5120 Před 6 lety +1

    Understandable!!!

  • @hendermolina
    @hendermolina Před 5 lety

    Is Jones name need to be on the deed or or mortgage loan in order to qualify as full time real estate professional?

  • @frenchyalicea649
    @frenchyalicea649 Před 5 lety

    What about if "she" the wife earns 50k? Does the couple still get the benefit because she earns less than 150k a year and how does that play into being a "real estate professional"? Just trying to wrap my head around all the lil intricacies.

  • @punkinhed
    @punkinhed Před 2 lety

    They're not "loopholes"...

  • @syedraza7409
    @syedraza7409 Před 3 lety

    Hi Peter, really a good video. I have a quick question. If I obtain real estate license, and don’t work 750 hrs in a year, will I still be considered real estate professionals.
    Is there any way to contact you or your office.
    Thanks
    Syed

  • @citrineinvestorsgroup5782

    AMAZING INFO!!!!!!!

  • @ponzianomanning3071
    @ponzianomanning3071 Před 3 lety

    Peter, I have a question: How do you suggest managing the problem with
    IRS "depreciation recapture" when we sell a property that has a lot of price appreciation after years of taking depression? I can find no way around this tax burden. What's the point in taking depreciation when the IRS will take it back -in lump sum-upon sale? Can you help with this or provide a video? Thanks so much!

    • @user-fm9gc7dh8c
      @user-fm9gc7dh8c Před rokem

      I have been thinking about this as well. Depreciation helps you take the money TODAY. 25k tax back due to depreciation today is worth more than 25k in 27 years as value of money goes down. Thats benefit number 1. second benefit is you get cash so that you can go and buy more real estate and get bigger

  • @pywifishingandoutdoors

    Hi Peter,Thanks again for the great videos, I bought your cre for dummies, and completed your work course on your website, going to go over it again maybe another 50-100 more times lol. I do have some questions on how taxes and setting up entities/using land trusts offset and protect your investments as a business and a rei. How does the amount of deprecation and expenses for your rei business outweigh your ordinary earned income and passive rental income from rents/garage/laundry/etc? Could you set the incomes into different entities? And would they be taxed differently (excluding FICA and medicare for passive)? And because I know as a business you can't always write off more of your losses than what your business brings in. How does this work as a long term investment?

  • @Theuniverseisstrange
    @Theuniverseisstrange Před rokem

    Was she a real estate agent or a real estate “professional” ?

  • @andriartayudianto8918
    @andriartayudianto8918 Před 6 lety

    Harris, I love your videos. However I do have this one lingering question. If you show very little taxable income or even a loss on paper, how can you get a loan, as banks want to see a good taxable income on paper to qualify you for a loan?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 6 lety +1

      In Commercial Real Estate, you can obtain loans based on the property's income, not your personal income.

  • @tazaxx21
    @tazaxx21 Před rokem

    A person making $100K/yr. paying $25K in mortgage interest on their home?? Sounds to me like they bit off more home than they could chew..

  • @javierdomingo6673
    @javierdomingo6673 Před 4 lety

    Wow mind blown!

  • @BarryBranton
    @BarryBranton Před 4 lety

    I like it.

  • @orange2115
    @orange2115 Před 7 lety

    Let's say I just created a new Microsoft and automated it - essentially meaning that it is just a source of cash flow for me.
    If I invested in real estate, could I qualify for #3 if I portrayed myself as a professional and spent over 700 hours on it?
    Or what would be the best thing for someone in that situation to do? (owner of companies)
    great videos by the way! Thanks.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +1

      That would be a great question for a CPA because this is certainly a place where some people position themselves as qualifying but they don't.

  • @streamingmadman2427
    @streamingmadman2427 Před 4 lety

    Do you have to own the properties outright or do REITS count toward F/T real estate?

    • @07krutons
      @07krutons Před 3 lety

      Reits do not count but syndications get some of the benefits

  • @PEPPTalk5
    @PEPPTalk5 Před 7 lety

    Are the same tax benefits on your third category apply to a CRE investor, managing his own RE portfolio, if he is single and only holds a master lease on a say 99 unit property?

  • @heayoung-lynncho2407
    @heayoung-lynncho2407 Před 6 lety

    Hello. thank you so much for your video. I have a quick question.
    currently I rented a space for my business and paid huge tax for last year.
    is it a good to buy a property for my own business? do I still get all the deductions?
    also do I buy with my name or business name? or doesn't matter.
    I have a rental residential house as well.
    thank you in advance.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 6 lety +2

      Yes, it's oftentimes a great idea to buy the real estate that your business rents and yes, you can enjoy the tax benefits of that, such as depreciation (that you don't get when you rent).

  • @dannyidahosa7543
    @dannyidahosa7543 Před 7 lety

    Im sorry if this question is weird but In the last example with Dr. Rob, if he and his wife file jointly, isn't their total income technically still 250k together even though she's a housewife, in turn leading to them still not being able to utilize the tax benefits ? With your example we are assuming their incomes are looked at separately, but then how can they both utilize the tax benefits from the wife becoming a R/E professional?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +2

      When you are married, filing together, the beauty of that arrangement is that the wife can be considered a real estate professional and they both can enjoy the benefits thereof.

    • @DrAnthonyTLadson
      @DrAnthonyTLadson Před 6 lety

      Does the wife has to be the owner of the commercial real estate to get the $90k write off?

  • @navjeetchahal
    @navjeetchahal Před 7 lety

    When you are talking about commercial real estate depreciation is 39 years not 27.5 years.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +1

      An apartment building is 27.5 years; if it is NOT an apartment building but any another commercial building, it's 39.5 years.

  • @Richmon-qm4dt
    @Richmon-qm4dt Před 7 lety

    If I own 5 separate houses in different states. Would that quality as commercial real estate and receive the same tax benefits?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +1

      It's not about commercial versus residential; it's about being able to prove that the majority of your time is spent managing your real estate assets.

  • @lvteachme973
    @lvteachme973 Před 4 lety

    God, I love you!

  • @jakes5530
    @jakes5530 Před 6 lety

    Hi Peter, do these same tax benefits that you gave in the example apply if you owned a NNN property? Could you still write off the same expenses?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 6 lety +1

      You would have to report the triple net payments (taxes, insurance, etc) as income to be able to report those expenses.

  • @klintous
    @klintous Před 7 lety

    Commingling my real estate assets is kind of scary. Donald Trump, and other successful real estate Investors have prenuptial agreements. I'm wondering what my options are being single or filing separately.

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety +2

      Ask a divorce attorney because they know all about how to segment assets

    • @klintous
      @klintous Před 7 lety

      Commercial Property Advisors just found your CZcams page last week and I love it! I recently acquired the "for dummies" book. I look forward to reading the book, viewing the past videos, and your new videos.

  • @gtgeo316
    @gtgeo316 Před 6 lety

    Doesn’t tax advantages also apply to people who have their own business?
    I don’t make w-2 income. I’m 1099, don’t I qualify for all the real estate tax advantages?

  • @omidhemmat4266
    @omidhemmat4266 Před 6 lety

    Hello,
    Thank you for this informative video. How about someone who is a self employed doctor and makes more than 200k, instead of being a W2?
    Thank you

  • @jakes5530
    @jakes5530 Před 6 lety

    Does the 150k refer to total income from your job + cash flow from your properties? or is the 150k just your full-time​ job salary max?

  • @RawRx4U
    @RawRx4U Před 6 lety

    If I work part time at a job and also do real Estate investing. ..do I still qualify as full time real Estate professiona?

  • @l1998
    @l1998 Před 7 lety

    Do you have to get a license to become a RE professional? Or just owning a commercial RE property and not working at other jobs qualifies you as a professional?

  • @Cartics2000
    @Cartics2000 Před 7 lety

    For scenario 2, is it 25k depreciation on each property or total on all properties?

    • @CommercialPropertyAdvisors
      @CommercialPropertyAdvisors  Před 7 lety

      Total

    • @DonDon-oj4kx
      @DonDon-oj4kx Před 7 lety

      Commercial Property Advisors for how many years can you depreciate the 25k for ? Is it just the first year or as long as your the owner of the commercial property? Thanks

  • @marcelomedina9972
    @marcelomedina9972 Před 7 lety +1

    What kind of solution to any problem would getting married be? I would think that's a problem, not a solution...so you're telling me you would rather get married in order to save in taxes? You must be joking sir!! Hey, to each their own I suppose

  • @eddiegoodman6424
    @eddiegoodman6424 Před 7 lety

    What if she divorce you and take half