Owner Occupant Business Real Estate

Purchasing a building to owner occupy as a business can offer several tax, liability, anonymity, and legal benefits. Here are some potential advantages:

Tax Benefits:

• Depreciation: A building purchased for business use can be depreciated over time, which can reduce the taxable income of the business.
• Property Taxes: Property taxes paid on the building can be deducted from the business's taxable income.
• Mortgage Interest: Interest paid on the mortgage for the building can be deducted from the business's taxable income.

Liability Benefits:

• Limited Liability: Owning a building through a separate legal entity, such as a corporation or limited liability company (LLC), can provide the business owner with limited liability protection. This means that the owner's personal assets may be protected from any potential lawsuits or claims against the business.
• Control Over Property: Owning the building can give the business owner control over the property, which can help to reduce liability risks by allowing the owner to make necessary repairs or modifications to ensure the safety of the building.

Anonymity Benefits:

• Privacy: Owning a building through a separate legal entity can help to maintain the owner's privacy by shielding their personal information from public records. This can be especially important if the owner wishes to keep their ownership of the building private.

Legal Benefits:

• Asset Protection: Owning a building through a separate legal entity can help to protect the building from potential creditors of the business, which can help to ensure that the building remains an asset of the business.
• Exit Planning: Owning a building can provide the business owner with an exit strategy if they wish to sell the business in the future. The building can be sold separately from the business, which can help to maximize the value of the business and allow the owner to retain ownership of the building.

Exit Planning Options:

• Sale-Leaseback: The business owner can sell the building to a third party and then lease it back from the buyer. This can provide the business owner with immediate cash flow while allowing them to continue operating in the same location.
• Asset Sale: The business owner can sell the building separately from the business, which can allow them to maximize the value of the business and retain ownership of the building.
• Retirement Planning: The building can be used as part of the business owner's retirement plan by allowing them to sell the business and continue to collect rental income from the building.

It is important to note that the benefits of owning a building for business purposes may vary depending on the specific circumstances of the owner and the property. It is recommended that business owners consult with a qualified attorney or financial advisor to determine the best course of action for their individual situation.