Office buildings, medical facilities, resorts, garages, and farmhouses are examples of commercial real estate Florida as the properties are exclusively used for business. They are a place of work more than they are living spaces. 

Commercial real estate properties found in Florida and other major cities have tax benefits for investors. They can result in massive returns, especially over a long time. Here are some of these tax benefits:

Interest-expense Tax Subtraction

Commercial real estate allows investors to subtract interest used to pay commercial mortgages from their federal income tax. It is especially advantageous to borrowers with high interest on construction loans. 

Reduces Payees Total Payable Tax

The owner’s heirs are favored as follows: if their parent buys a property worth 3 million dollars and its value appreciates to 4 million dollars before the owners pass on, they will pay taxes worth one million dollars. The amount is the appreciated cost and not the entire 4 million sales price. So many dollars are saved this way.

Tax Credits From Various Programs

The low-income housing tax credit program allows a dollar-for-dollar federal income tax subtraction among investors who qualify for low-income properties. Historic Tax Credit is another program that awards tax credits per the new markets tax credit program, giving investors a tax credit in developing low-income regions.