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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I will be opening an insurance agency on November 1st. My

Customer Question

I will be opening an insurance agency on November 1st. My husband and I have found a building/property that we can lease for $1,200 a month with the option to buy within two years for $370,000, or we could purchase the building/property for $350,000 today. Property taxes are $4000 every six months and they will be paid by the owner until the building is sold. The seller has asked us to pay $10,000 to secure the option to buy. (which would go towards the purchase price when, or if, we took the option) What are the tax advantages of buying the building in 2010? My husband retired and received a sizable severance in May 2010. We would like to reduce the amount of taxes we will have to pay for 2010. Both of us have made a salary in 2010. Would purchasing a building be our best option? Cash flow is important, but we are trying to weigh it against the tax benefits/deductions.
Submitted: 7 years ago.
Category: Tax
Expert:  Mark D replied 7 years ago.

Are either you or your wife classified as real estate professionals?


Mark D

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