A Captive Real Estate Investment Trust (Captive REIT) is a business and tax strategy employed by large retailers and banks with substantial real estate holdings or property loans. The REIT is sold by the company to investors to hold the real estate assets that were previously on the company's books. The company then pays rent to the REIT, which it deducts as a business expense.
A deduction that allows taxpayers who use part of their home for business purposes to deduct certain expenses from their taxable income.
A tax term that allows a current deduction for business expenses, contrasting with capital expenditures and unreasonable expenses.
