LLC

Jmac14 — Wed, 30 Oct 2024 19:35:55 GMT

If I am building on land I bought for my business, can I deduct land mortgage payments or the actual building itself as it’s going up?

Re: LLC

Cindy4 — Wed, 30 Oct 2024 20:13:51 GMT

Land is a non-deductible asset, however the loan interest may be deductible as a business expense if the land is in the LLCs name. The building could be a deductible business asset if it is being used solely for the business, but it is deducted using depreciation. The depreciation life for commercial property is 39 years, so the cost would be spread out over that time frame.

Costs of repairing and maintaing the building can be deducted as business expenses, again if the building is being used for business only. Otherwise, only the business related expenses can be deducted.

Something to consisder going forward:

Is the LLC a separate tax entity like a corporation or partnership, or is it a single member LLC being taxed as a sole proprietor on a Schedule C of a 1040?

Hope this helps!

Cindy

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LLC

Re: LLC