Comments on: Can I deduct a business mortage payment or only the interest and why? http://bestbusinesslive.info/can-i-deduct-a-business-mortage-payment-or-only-the-interest-and-why/22/ Business Info for the Experts Sun, 28 Feb 2010 23:24:34 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Jonathan B http://bestbusinesslive.info/can-i-deduct-a-business-mortage-payment-or-only-the-interest-and-why/22/comment-page-1/#comment-41 Jonathan B Tue, 26 Aug 2008 05:19:42 +0000 http://bestbusinesslive.info/can-i-deduct-a-business-mortage-payment-or-only-the-interest-and-why/22/#comment-41 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! 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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