As we’ve mentioned before, investing in Alaska commercial real estate can be a lucrative endeavor. However, you’ll need to make sure you’ve chosen the right property type, researched the necessary steps to take and mistakes to avoid, as well as structured your investment properly.
If you’ve structured your commercial investment operation well, you will be ready to take full advantage of the tax benefits associated with being an investor.
How to Get Started
There are several ways to reduce the tax liabilities of an Alaska commercial real estate investment, beginning with the following:
Find an Expert CPA
Just as you would with any other investment or even a residential real estate purchase, you will need to team up with an expert to help you navigate the in’s and out’s of reducing your taxes. Your real estate agent can likely provide you with a recommendation for a Certified Public Accountant (CPA) and while it helps if your tax professional is also an investor, you can always count on Northern Edge Real Estate to provide expertise in that area.
Stay Organized
Becoming a commercial real estate investor requires immense organization, especially if you want to avoid any hiccups with the IRS. Start brainstorming how you can keep all of your expenses and income neat and organized, creating a system that you can easily update and go back to for reference. Keeping a running spreadsheet is helpful to stay on top of every amount and number and this way, you are in complete control.
Purchase Property
Owning commercial real estate and other rental properties is one of the best ways to grow your wealth. In fact, according to Forbes, real estate consistently ranks among the top industries for creating millionaires in the United States and around the world. One of the best ways to stay on the right side of success is simply to purchase property. When you purchase rental property, you are able to depreciate the structure over several years, thus granting you a deduction each year into the thousands.
Separate Your Investments
If you have several Alaska real estate investments, it is wise to separate them into two categories: short-term for those investments lasting less than one year and long-term for those lasting longer than one year. By doing this, your CPA can help you decide how best to structure your investing.
Northern Edge Real Estate specializes in commercial real estate investments and owner-occupied buildings from acquisition to disposition in the Anchorage and Mat-Su markets. With innovative, pragmatic and creative problem-solving as well as the industry know-how to help you navigate your investment, we are happy to be your guide to commercial asset profitability in the Alaska commercial real estate market.
