Discussion:LLC - mortgage interest and property tax & loss on sale

[jmc]

One of properties owned by an LLC was never rented or used as a residence then sold in a few months from the purchase.
If it was owned by individual, mortgage interest and property tax can be deducted on Schedule A, and loss on sale is not deductible.
But, if owned by an LLC, how can I report mortgage interest and property tax & loss on sale on what section of Form 1065?

[BHoffman]

I believe the interest and property tax is capitalized and added to basis, although others may have a different take on this. The loss could be ordinary if the LLC is in the business of flipping real estate. Otherwise, looks like ST capital loss to me.