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As a business owner in Florida, you know that smart strategy is key to long-term success. I'm writing to you today about a game-changing legislative update that presents one of the most significant strategic opportunities for business owners in decades.
Effective October 1, 2025, Florida will officially eliminate its sales tax on commercial rent. For years, this tax has created a financial penalty for business owners who used the smartest strategy for holding their real estate. Now, that penalty is gone, and it’s time to act.
The Penalty on Smart Asset Protection is Finally Over
For savvy business owners, the best practice has always been to separate business operations from real estate assets. This means your operating company (like an S-Corp) is one entity, and the building it operates out of is owned by a separate entity, typically an LLC that you also own.
Why? Asset Protection. This structure creates a legal firewall. If your business faces a lawsuit, your valuable real estate is shielded. Conversely, if a liability arises from the property itself (like a slip-and-fall), your business's assets are protected.
But here was the catch: Florida's commercial rent tax forced you to pay sales tax on the rent your business paid to your own real estate company. This "self-rental" arrangement, while strategically brilliant, was penalized with an unnecessary tax, costing you thousands of dollars a year simply for protecting your assets correctly.
The New Landscape: Seize the Advantage
With the repeal of this tax, the financial penalty for employing this superior ownership structure vanishes. This makes the "rent-to-yourself" model more advantageous than ever, allowing you to unlock its full potential:
Build Personal Wealth: Your operating business pays rent, which becomes a deductible business expense. This rent payment builds equity in your real estate LLC, turning a business expense into a powerful wealth-building tool for you personally.
Powerful Tax Deductions: Your real estate LLC can offset the rental income with expenses like mortgage interest, property taxes, insurance, and—most importantly—depreciation, a significant non-cash deduction that can lower your overall tax burden.
Create a Flexible Exit Strategy: When it comes time to sell your business or retire, you have more options. You can sell the operating company to a successor while keeping the real estate, providing you with a steady stream of rental income for years to come.
This legislative change opens a strategic window for business owners and entrepreneurs. Whether you currently lease from a third party and are considering buying, or you already own your property but have it under the same roof as your business, now is the time to evaluate your strategy.
As a licensed commercial real estate and business broker, I can guide you through this entire process. My services include:
Strategic Analysis: We can sit down to analyze your current lease or ownership structure and determine the most advantageous path forward.
Property Acquisition: I can help you identify and acquire the perfect property for your business, one that serves not only your operational needs but also your long-term investment goals.
Connecting You with Experts: While I navigate the real estate side, I can connect you with my trusted network of legal and tax professionals who specialize in structuring these entities for maximum benefit and compliance.
Don't let this opportunity pass you by. Let's position your business and your personal assets for maximum growth and protection in this new, more favorable Florida landscape.
Contact me today to schedule a confidential consultation. [email protected]
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Big investors are buying this “unlisted” stock
When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso.
Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market.
And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history.
Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO.
Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.
Book Shelf from Brett Vogeler: amazon.com/author/bvogeler
Need a roadmap? Reply in the comments section or send us an email for assistance. 360 Perspective Partners offers Professional Licensed Business, Commercial and Investment Brokerage Services along with providing Professional Licensed Community Management Services in Central Florida: https://my360perspective.com/
Contact me directly at [email protected]. To see our other useful Newsletters on this topic and others: https://realestate-business-broker-guru.beehiiv.com/
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