Deducting Mortgage Loan on Commercial Property

[Steve Stang]

This is probably something that I should know but have hit a brain freeze. I have a client with a commercial mortgage on her business condominium. She has received a 1098 from the lender showing $1,000 in interest paid. Her itemized expense summary from Quickbooks shows $8,000 paid to lender. On the Schedule C, I plan on entering the mortgage interest paid. Is there any place I should list the principal paid toward the loan as an expense of the business? If it makes any difference, the taxpayer operates as a self-employed business filing a Schedule C.

[spanel]

This is probably something that I should know but have hit a brain freeze. I have a client with a commercial mortgage on her business condominium. She has received a 1098 from the lender showing $1,000 in interest paid. Her itemized expense summary from Quickbooks shows $8,000 paid to lender. On the Schedule C, I plan on entering the mortgage interest paid. Is there any place I should list the principal paid toward the loan as an expense of the business? If it makes any difference, the taxpayer operates as a self-employed business filing a Schedule C.

You dont list the principle payments as you should be depreciating the Condominium.

Chris

[Steve Stang]

Thanks. I am depreciating. I didn't think the principal would be deductible. As I said, I had a brain freeze yesterday. Thanks again.

[John of PA]

The principle is covered by your depreciation deduction, so interest only goes as an expense deduction. Wishing all a smooth finish.