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More money at the end of the year as a commercial real estate investor, that's the ultimate goal. When all is said and done, the surest way to reap more profits from a piece of commercial real estate is to find and claim as many of the 350 possible deductions and US tax credits as you can on your end of the year tax return.

Most of the ordinary deductions are easy, as any accountant will tell you. First and foremost, you will be deducting your lease costs or, if you own the building, your mortgage interest, taxes and insurance. It's important to also remember the depreciation on the building; this is a paper deduction that can mean more a lower bottom line without actually costing you a cent.

Next come the standard Schedule C deductions. If you pay someone to manage the property, you can deduct the management fees. If you manage the property yourself, you can deduct any utilities you pay, as well as cleaning, maintenance and repair costs. Any assets and equipment you need, such as appliances for apartments and lawn care equipment are deductible either as a straight or accelerated depreciation item.

But there are still more deductions to be had. A home office, or leased office space can be deducted as part of your investment business as ca the telephone fee, office equipment and supplies. Any travel you do to inspect or show the property, or to attend investment organization meetings is deductible, as are your meals. The dues for the organization itself are deductible and so are the fees for ongoing educational seminars, magazines and books.

Another often-overlooked deduction is the storage space you need for extra appliances, building materials, plumbing supplies and seasonal needs. This can be deducted as rent or depreciated.

Apart from these recurring deductions, there are also tax credit items that can save money on the tax return by directly crediting the tax instead of reducing the net profit. One of these is the "Commercial Building Tax Deduction," which establishes a tax deduction for expenses incurred for energy efficient building expenditures made by a building owner. The deduction is limited to $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems. The provision is effective for property placed in service from January 1, 2006 through December 31, 2008.

There are additional tax credits available in your state for creation of new jobs, location in a targeted area and improvement of a property in a challenged zone. Your tax specialist will have more information about these and other tax credits for insulation, windows, and solar and geothermal systems.

When you own commercial real estate, it only makes sense to use every resource you can find to pay less tax. The money you save can only put a jingle in your step, and your pocket.

Learn more about this author, Linda Sorcie Smith.
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