Reasons to lease a commercial building include having fewer responsibilities, being able to move to another building if need be, not having to worry about paying a mortgage, having the ability to negotiate the price of the lease and not having to make a down payment, according to AllBusiness.com. Leasing a commercial building is a good idea for small business owners and entrepreneurs.Continue Reading
Common responsibilities that come with owning a commercial building include maintenance, security, management and remodeling, notes AllBusiness.com. If a small business grows into a large business, the owner can easily relocate to a larger building without worrying about having to sell his building. Without having to pay a mortgage, business owners have more money that can be put back into growing their businesses.
Another advantage of leasing a commercial building instead of buying it is that the lease payments are tax deductible, according to AllBusiness.com. The IRS considers leasing a commercial building as operating expenses. Leasing a commercial building also qualifies for dollar-for-dollar tax credits. Tax credits count towards federal income taxes and equate to 10 percent of the equipment costs for the tax year in which the equipment is used. Even though the person who owns the building is the one who takes advantage of the tax credit, the person leasing the building can benefit from the credit by getting a lower lease payment.Learn more about Real Estate