Where do I post mortgage principle in cash based accounting

[manthu]

I am doing cash based accounting so i will not have depreciation, where do i post the principle part of mortgage payment

[DaveF1006]

To clarify, what type of business return are you working in.  Is it a 1040, 1041,1120X, or 1065? Are you reporting a mortgage payment you make or income from a note?

[manthu]

This for the 1120S cash based accounting

[manthu]

This is for 1120X I need to report the mortgage payment

[PatriciaV · Accepted solution]

They payment of mortgage principal reduces the mortgage balance but is not a deductible tax transaction. 

The interest is reported as a business deduction on Form 1120S. Depending on the purpose of the mortgage, the interest may be an investment interest expense (Schedule K Line 12b), Rental Expense (Schedule K Line 3) or a Nondeductible Expense (Schedule K Line 16c).