Real Estate 2026

USA – NORTH CAROLINA Law and Practice Contributed by: John Livingston and Brittani Miller, Kilpatrick Townsend & Stockton LLP

are generally deductible as a business expense at both the federal and state levels, and mortgage inter - est on loans used to acquire, construct or improve commercial properties may be deductible as business expenses. Gains from the sale of commercial proper - ties may be subject to federal and state capital gains taxes, but owners may be able to defer these taxes through a 1031 exchange by reinvesting proceeds into similar real estate. Operating expenses, such as repairs, property management fees, utilities, insurance premiums and advertising costs, may also be deduct - ible. There may also be tax credits available in certain circumstances such as low-income housing, historic rehabilitation and qualified opportunity zones. Specific tax circumstances should be reviewed with account - ants and tax attorneys.

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