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Level 3
March 1, 2022
Solved

Mortgage Interest

  • March 1, 2022
  • 1 reply
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My wife and I formed an LLC to buy a bed and breakfast. The mortgage is in the name of the LLC. I listed the building on the "assets" last year, and it shows on the depreciation sheet this year. I cannot find where I am supposed to deduct for the mortgage interest (Turbo Tax Business Desktop). Taxes are due in 2 weeks. Please help!!!

Best answer by MinhT1

The Mortgage Interest is deducted under Federal Taxes > Deductions > Business Expenses > Investment Interest Expense.

1 reply

MinhT1Answer
Level 15
March 1, 2022

The Mortgage Interest is deducted under Federal Taxes > Deductions > Business Expenses > Investment Interest Expense.

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PapaOpahAuthor
Level 3
March 1, 2022

This is Mortgage interest on the purchase of the property. It does not produce interest, dividend royalty or annuity income. We rent rooms to guests for short stays - much like a hotel. 

 

Level 15
March 1, 2022

Yes. I understand.

 

For the LLC, the bed and breakfast is an investment. And you report the mortgage interest as a business expense under Investment Interest expense.

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