I started an single member LLC to purchase an aircraft hangar (condo) sublease that is valid for the next 39 years. The cost of the purchase from the previous subleasee was $60,000. I have deducted mileage to the hangar from my home once monthly for visual inspection, as well as monthly expenses of electricity and gas, as well as an annual association assessment as on-going expenses.
I further sublet the hangar to a partnership for their airplane and have reported this as rental income for the LLC.
As the value of the sublease the LLC owns on the hangar diminishes with time, how do I report/deduct the $60,000 payment? Is it a single payment or should I divide the $60,000 over 39 years and report $1539 as the lease payment for the year?
Likewise the $60,000 was funded with personal funds and would like to consider it as a loan to the business, am I allowed to repay myself over time and deduct it from the business income?
