Why It Makes Sense to Buy Your Business’ Building

Unless you’re running your business from a home office, you’re going to need office space. And if you’ve established a successful enterprise, the next logical step for both your professional and investment growth may be to consider direct ownership of business real estate. In other words – buy the building your business is housed in.

Why might this be a good idea for you?

• You can own the property personally, and your company will pay you rent.
• The rent you receive is passive income.
• Rental income will increase over time.
• You have control over your real estate investment future.
• Appreciation accrues to you and depreciation and interest are deductible.
• With a triple net lease between you and your company, your company pays all the property expenses.
• You can sell the business when you retire yet keep the building and lease it to the new owners, giving you an income stream

And with the right planning, you can leverage the power of a #1031 exchange to facilitate the purchase of your business’ building. This gives you capital gains tax deferral along with personal ownership of a valuable property with monthly cashflow.

So if you’re business is at the point where long-term success seems inevitable, now may be the time to consider becoming a landlord rather than a tenant.

If a 1031 exchange is in your future, visit our website to learn more about these powerful tax deferral tools and our qualified intermediary and replacement property locator services.