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Old 05-13-2014, 07:41 PM
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Question on LLC deduction

My business, Single member LLC is considering purchsing a piece of land appraised at 60,000 and a building (inaccurately apprasied at 20k, will apprasided much higher but say 50k)

So I have 110,000 and the owner is willing to do financing with 5% interest over 20 years with a ballon at 5.

My question I am aware that land is not tax deductable but buildings are. My payments will be around 800 with insurance and land tax. How much of that can I deduct? The entire amount ? So at the end of the year I should have 9600 I could deduct?

State of GA



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Old 05-14-2014, 05:41 PM
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Originally Posted by Pilotlevi View Post
My business, Single member LLC is considering purchsing a piece of land appraised at 60,000 and a building (inaccurately apprasied at 20k, will apprasided much higher but say 50k)

So I have 110,000 and the owner is willing to do financing with 5% interest over 20 years with a ballon at 5.

My question I am aware that land is not tax deductable but buildings are. My payments will be around 800 with insurance and land tax. How much of that can I deduct? The entire amount ? So at the end of the year I should have 9600 I could deduct?

State of GA

My question I am aware that land is not tax deductable but buildings are.=========>>>>>>>>>>>correct

My payments will be around 800 with insurance and land tax. How much of that can I deduct? The entire amount ?======>>>>>the entire amount on your Sch C of 1040 as your business operating expenses. You can also deduct de[preciaition expenses on your biz use b/d on your return on Sch C of 1040;however when you dispose of the b/d , you must recapture the accumulated depre , sec 1250 recapture(as ordinary income taxed at 25% if your tax rate is 25% or higher) on f4797 aslongas you have gain on sale of the b/d; if no gain, no need to recapture the depre.


So at the end of the year I should have 9600 I could deduct?========>>>>>>>>>>>correct;$800*12; •Real estate tax on property used for business is deductible, along with any special local assessments for repairs or maintenance. If the assessment is for an improvement -- for example, to build a sidewalk -- it isn't immediately deductible; instead, it is deducted over a period of years.



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