topic Vacant land under multimember LLC, capitalized mortgage interest and property taxes in Business & farm

Vacant land under multimember LLC, capitalized mortgage interest and property taxes

apradee — Sat, 26 Sep 2020 12:59:25 GMT

I own vacant land and vacant commercial lots for investment with partners under a multi-member LLC. In 2019, we had no income and there was not property sale. We incurred significant costs for mortgage interest and property taxes. Since there is no income to deduct these costs against, how do I handle them? Specifically, how do I report them using Turbo Tax Business 2019 (I have the CD)? I report personal taxes using Turbo Tax Premium.

Re: Vacant land under multimember LLC, capitalized mortgage interest and property taxes

mellish7777 — Sat, 26 Sep 2020 14:28:33 GMT

Investment property? The interest is investment interest and the property taxes are deducted as property taxes. These can be capitalized if an election is made.

Re: Vacant land under multimember LLC, capitalized mortgage interest and property taxes

apradee — Sat, 26 Sep 2020 18:09:44 GMT

Yes, it's an investment property. Can you please guide me with steps to take? What do I need to within Turbo Tax Business for the LLC? At this point, it'll be an amendment. When I filed back in March, I had incorrectly classified these as rental expenses. I need to know what I need to do in future years as well.