What can be counted towards the $1 million investment requirement?
If the new commercial enterprise requires a physical location for business operation, can the money used to acquire the real property count towards the $1 million requirement? For example, the NCE is a residential elderly care business. Can the money used to purchase the residential homes and subsequent renovation count towards the $1 million requirement?
Answers
The short answer to your example situation is that yes, it is allowable, but as a general rule the acquisition of the underlying real estate should be integral to the business.
Yes, the real property may be used towards the $1,000,000 investment. The underlying purchase must be sufficiently connected/necessary to the new commercial enterprise.
Why not? As long as you are making an equity investment for the project that needs the real estate to operate that is all that matters.
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