Posted on: 12.30.2008 9:12:42 AM Posted by John Herman
While getting through 2009 is
going to be a challenge, we still need to plan for 2010 and beyond. Here are a
couple of thoughts to get prepared for the future.
Reevaluate Your Portfolio
Throughout
2009, take time to reevaluate your leases, locations and operating expenses.
If
you’re not comfortable doing this yourself, ask for help. Enlist the help of a
company that does property management to set benchmark measurements. Choose a
firm that works with a diverse group of customers—they usually can command the
best economies of scale and tend to have good data bases.
It’s
also a good time to take a closer look at excess land and space as potential
opportunities to boost the balance sheet or income statements.
Assess Your Real Estate Taxes
The slow economy is also a good excuse to assess your
current real estate tax situation. Assess your taxes compared to market
comparables and since property tax assessment laws differ from state to state,
it is important to learn as much as possible about your jurisdiction. Protesting
taxes is a common practice and expert help in this area can yield good returns.
There are a couple of easy ways to ensure you’re not
overpaying. For starters, instead of automatically rolling-over your personal
property report, conduct a thorough itemized review. Secondly, be sure to
document any property changes made throughout the year. Significant changes can
dramatically affect the market value of real estate.
When remodeling or building new, it can be beneficial to separate the costs of "permanent" portions of a building from those less permanent, becuase these less permanent elements can be depreciated at a much faster rate than real estate. The IRS recognizes the shorter life span of finishes as compared to the structure and infrastructure of a building. The advantages are dependant on your organizations tax structure obviously, and your designers and constructors may charge you extra for the effort required to break out these cost, but especially in medical office buildings and other commonly remodeled space, the returns can be well worth it.