IsabellaG
Expert Alumni

Investors & landlords

I would consider entering the amount that you would need to pay to end the lease as "Outstanding Mortgage Principal" and the date that you started paying the ground rent as the "Mortgage origination date." Your situation is not common, but if this is truly redeemable ground rent then you are entitled to deduct the payments as mortgage interest. As long as the amount needed to end the lease will not trigger the mortgage interest limitations (For mortgages over $1,000,000 up to 12/15/ 2017 and $750,000 after 12/15/2017) you should be able to use TurboTax to claim this deduction.

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