You can deduct the interest as a business expense, it just would not qualify for mortgage interest because the loan is not secured by the property. In Turbo Tax it will be in the Rental Expenses on a page that says Any Other interest paid? (see attachment)
From the IRS:
You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your trade or business. Interest relates to your trade or business if you use the proceeds of the loan for a trade or business expense. It does not matter what type of property secures the loan. You can deduct interest on a debt only if you meet all the following requirements.
You are legally liable for that debt.
Both you and the lender intend that the debt be repaid.
You and the lender have a true debtor-creditor relationship.
You can deduct the interest as a business expense, it just would not qualify for mortgage interest because the loan is not secured by the property. In Turbo Tax it will be in the Rental Expenses on a page that says Any Other interest paid? (see attachment)
From the IRS:
You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your trade or business. Interest relates to your trade or business if you use the proceeds of the loan for a trade or business expense. It does not matter what type of property secures the loan. You can deduct interest on a debt only if you meet all the following requirements.
You are legally liable for that debt.
Both you and the lender intend that the debt be repaid.
You and the lender have a true debtor-creditor relationship.