Mark Kohler argues business owners should buy their commercial space instead of renting. Ownership often costs less when you factor in depreciation, write-offs, and equity building. A newly acquired building can be depreciated enough to reduce your taxable income to zero.
If you're a business owner and you're paying rent to anyone else, I want you to buy your own space, buy your own shed, buy your own storage unit, buy your own building. And so many business owners think it's more expensive than it really is. A lot of these big buildings that we see downtown, they're condominium ized. When you say, I need space, I can't afford my own building. You could buy a slice of a building that's been condominium ized, commercial condos, huge space. Especially since COVID my partner and I, we've tried to buy our own space for our law firm, our trust company, our business company, my studio. This shed is a write off. So I don't want to pay rent to anyone. That's the strategy. Now, some people go, well, Mark, I'm in a lease right now. I'm in a five year lease or I'm in a three year lease or whatever. If you terminate the lease, you're on the hook. Not for the whole five years. You're on the hook till they get a new tenant in there and you can help them get a tenant. In fact, your tax savings and financial savings may be so much freaking A, I'll pay the rent for the next five years because instead of paying rent to someone else, I'm now building equity in my own building, maybe paying less in rent to myself. And under the one big beautiful bill, I can depreciate the hell out of that building and pay zero tax this year.
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