Comments on: Can I deduct a business mortage payment or only the interest and why? http://www.maciowa.com/business/can-i-deduct-a-business-mortage-payment-or-only-the-interest-and-why Marketing, Advertisting & Communication Sat, 11 Feb 2012 13:51:58 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Jonathan B http://www.maciowa.com/business/can-i-deduct-a-business-mortage-payment-or-only-the-interest-and-why/comment-page-1#comment-2308 Jonathan B Wed, 01 Jul 2009 14:22:59 +0000 http://www.maciowa.com/business/can-i-deduct-a-business-mortage-payment-or-only-the-interest-and-why#comment-2308 The business can only deduct interest expense. If you own the property personally, and the loan is in your personal name (OK if business is a co-borrower), then the business could deduct the entire payment as rent expense. However, you'd then have a separate schedule on your tax return for this commercial real estate. You'd show the rent payment as income, and then deduct the interest expense there. If the business is an S-Corp then shouldn't be much of a difference either way. . . If you're a business owner with commercial real estate, you really should have a CPA (or experienced tax accountant) prepare your taxes. . . . Oh, you can't deduct the entire loan payment, as principal paid is a repayment of money lent to you!<br><b>References : </b><br> The business can only deduct interest expense. If you own the property personally, and the loan is in your personal name (OK if business is a co-borrower), then the business could deduct the entire payment as rent expense. However, you’d then have a separate schedule on your tax return for this commercial real estate. You’d show the rent payment as income, and then deduct the interest expense there. If the business is an S-Corp then shouldn’t be much of a difference either way. . .

If you’re a business owner with commercial real estate, you really should have a CPA (or experienced tax accountant) prepare your taxes. . . .

Oh, you can’t deduct the entire loan payment, as principal paid is a repayment of money lent to you!
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