When You Inherit Commercial Property
Maybe you are part of a family member’s will and at some point will inherit commercial property from them. Maybe you are the son of a business owner who passed down a building he ran his business in. Maybe you’re the daughter of a real estate investor. There are countless ways you could end up in a position to inherit commercial property, but regardless of how it happened, you’ll likely have a million questions: Should I sell it? Keep it? What are my tax obligations? It has been left to my siblings and I, so who owns it and to make it more complicated, what do I do with it if we don’t agree on what to do with it?
While the answers to these questions vary from situation to situation, your reaction to them should be the same: there are two people you need to talk to.
#1: An Accountant
When you inherit commercial property, even if it is completely paid off, you will be responsible for paying taxes based on inheriting the property. Depending on the location, size, value, etc. of the property, this could be a significant amount of money, so it’s essential to talk to someone who understands this. The last thing that you want to do is to wait a few months without doing anything to address your new ownership of the property, and then realize that you owe a lot to the government in the form of taxes. Your accountant can also discuss what it means when you inherit commercial property alongside someone else. There can be complications to this, so make sure to get an accountant with experience with these situations.
#2: A Commercial Real Estate Professional
The accountant is crucial, but when it comes down to it, they are only providing you with accounting and tax information. When it comes to actionable steps you need to take when you inherit commercial property, you need the expertise of a commercial real estate professional. The key word here is “commercial”. Commercial and residential real estate are two different animals that take two different skillsets. Companies like AushCo can help you whether you want to lease it, sell it, or just want some guidance on what to do.
Regardless of your situation, it is essential you talk to both an accountant and a commercial real estate professional. After doing so, you will have a better understanding of your situation and the steps you can take going forward. Don’t go through this alone. Let professionals guide you through the process.