Commercial Property Owners to Qualify for Energy Efficiency IRS Deduction
By Anthony Seruga
As a commercial property owner, taxes can be a sore subject. You might feel like
the government gets a large share of your income. While the government will always
be there to take a portion, that portion just got smaller. If you can make your
buildings qualify for energy efficient tax deductions, you could save a great deal
of money. The changes required might not be as bad as you think.
Some commercial property owners have never dealt with qualifying for energy efficient
tax deductions because they thought it was a waste of time. However, the government
has definitely made it worth your while to look into this now. With a 50% energy
efficient savings target, you can receive up to a $1.80 per square foot tax deduction.
While that may not seem like a lot, multiply that by several thousand square feet
and it adds up quickly.
Even if a 50% energy efficient savings seems like too much to shoot for, you can
still aim lower and get worthwhile tax deduction savings. Even if you only shoot
for a 16.67% energy efficient savings, you can get up to $.60 per square foot back
as tax deductions.
In order to get tax deductions, you have to claim that you will meet certain goals
over the next year. There are certain types of software that must be used to track
these goals. While the government is willing to cut you a break, they won't do it
without some effort on your part. This is usually a pretty fair trade for most commercial
property owners. In return for a slight change, they can receive large tax deductions.
Although the original plan that was put in place was scheduled to expire soon, the
deadline has been extended. As of now, commercial property owners can get energy
efficient tax deductions through all of 2008. While this is only another year, the
program will most likely be extended into the future.
Any way that the government can help the environment is becoming a big part of future
plans. With an election year coming up, even more emphasis on the environment will
be given. This emphasis could lead to even more energy efficient programs in the
future. If you're a commercial real estate owner, you could stand to save thousands
of dollars through energy efficient tax deductions.
Energy efficient tax deductions apply to three main areas of the building: the building
envelope, the lighting, and heating and cooling systems. These are the main areas
that can be improved upon. However, you will most likely recoup these costs over
the long haul. Any improvements you make to the building will also be deductible.
Therefore it's a win-win for you, the commercial property owner.
Tax deductions may not seem that important at first glance. However, when it's time
to file taxes, they are huge. Any advantage you can gain when filing taxes is critical.
Success in the commercial real estate game depends on gaining every advantage you
can get. Energy efficient tax deductions are definitely an advantage that you can't
afford to be without.
Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with
builders, developers and other players in the commercial real estate industry to
acquire and develop properties. They use progressive investment strategies that
have proved extremely profitable.