Mortgage Interest

[PapaOpah]

My wife and I formed an LLC to buy a bed and breakfast. The mortgage is in the name of the LLC. I listed the building on the "assets" last year, and it shows on the depreciation sheet this year. I cannot find where I am supposed to deduct for the mortgage interest (Turbo Tax Business Desktop). Taxes are due in 2 weeks. Please help!!!

[MinhT1 · Accepted solution]

The Mortgage Interest is deducted under Federal Taxes > Deductions > Business Expenses > Investment Interest Expense.

[PapaOpah]

This is Mortgage interest on the purchase of the property. It does not produce interest, dividend royalty or annuity income. We rent rooms to guests for short stays - much like a hotel. 

[PapaOpah]

It would have helped if you had said "Open up the topic and don't just read the summary..." lol

[MinhT1]

Yes. I understand.

For the LLC, the bed and breakfast is an investment. And you report the mortgage interest as a business expense under Investment Interest expense.