Can I deduct property taxes and/or mortgage interest on a non-residential property? Where on my return do I do this (filing personal/single entity llc return together)?

[ahamel2124]

The property was purchased by us, the single LLC my husband has is not named on the property and we haven't had it long enough to switch anything over to the business.

[CathiM]

If this non-residential property is used in your business, you can deduct the mortgage interest and property taxes as business expenses in the self employment income and expenses section of your tax return. Since your husband's name is on the deed of the property and he is the owner of the business, the property expenses can be claimed as a business deduction if it is used for the business.  You can also add the property as an asset and take a depreciation deduction as well. You will be asked to enter the percentage the building is used for business.  Deductions are based on this percentage.

To enter these deductions:

1. Click on Review next to Self-employment income and expenses Under the Income & Expenses section
2. Click on Edit next to your business
3. Click on Add expenses for this work
4. Scroll down and click on Mortgage interest  and Continue at the bottom and enter your interest on the next screen 
5. When done, click on Add expenses for this work and repeat the same steps for Taxes and licenses
6. When done, click on Add expenses for this work and repeat the same steps for  Assets, then choose Real Estate Property
7. On the screen Tell Us a Little More About Your Business Asset click on Nonresidential real estate
8. Enter your building information on the next 2 screens
9. Continue and on the screen Asset Summary click the box Show details and you will see the depreciation for your building