LLC Farm with house.

[gvb1]

We have multimember LLC farm with a house and land. No one lives in the house nor is the house rented. The land is rented to a local farmer. My question is about the house. Since the house is part of the LLC can the expenses be deducted. Expenses such as utilities, insurance, upkeep.  There is also a barn on the property that I have be replacing the siding with new.  Would the expenses for the barn be deductible?

[LeonardS]

From the information, you have provided it appears that only the land is rented and the house and barn are not rented.  Generally, expenses can only be deducted from income-producing activities.

The expenses for utilities, insurance, and upkeep on the house would not be deductible as the house is not being used to produce income.  If the house was a rental property then expenses related to the house could be deducted.  This also applies to the barn on the property.

You may be able to deduct real estate taxes, mortgage interest and insurance expenses for the portion of the land that is rented and any expenses related to the upkeep or improvements to the rented land.