topic Unique situation in Other financial discussions

Unique situation

SAL62 — Tue, 16 Feb 2021 02:10:30 GMT

I purchased a commercial building for personal use. The building used to be a store in a residential neighborhood, it is not a home -no kitchen or shower/bathtub. I am NOT self-employed. The building is currently used for storage. The use will change in the future to a mixed use building but for now it is just a place to keep my things. I used a commercial loan to purchase the building but did not get a 1098; I received a "Loan Interest Paid Notice" from First Interstate Bank.

I purchased Turbo Tax Deluxe which only allows tax entries for homes. I have not found a situation like mine in the discussions or blogs. What form do I need to file this properly? I do not own another residence so investment property doesn't seem right -but is it? Do I need to upgrade to Premier?

Thanks

Re: Unique situation

Anonymous_ — Tue, 16 Feb 2021 03:16:32 GMT

@SAL62 wrote:

I purchased a commercial building for personal use..........

To be perfectly blunt, that is all you had to write. As a result of the property being held for personal use (at this time), you are limited to deducting real estate taxes (subject to limitations) and casualty losses (if any).

In the future, if you change your use of the building to investment or rental, you will be able to deduct more expenses.

Re: Unique situation

SAL62 — Wed, 17 Feb 2021 03:10:22 GMT

Thank you for your response. Do you know if I can use the TTax Deluxe for filing/claiming this deduction or if I need to find a specific form? I will ultimately end up remodeling this building and will live in part of it, with the rest of it being a wood shop. I will retain the commercial zoning. Thanks again

Re: Unique situation

Anonymous_ — Wed, 17 Feb 2021 03:16:16 GMT

You can use Deluxe for your purposes. Schedule A (itemized deductions) is included in the product.