Discussion:Building purchase for S-Corp
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Discussion Forum Index --> Tax Questions --> Building purchase for S-Corp
| 9 January 2006 | |
| I have a client (S-corp) that wants to take out a bank loan to purchase an office building (rather than renting it currently) in company's books. As this will be an asset for the company (with loan being long-term liability), I think that the building will have to be depreciated over its life? And the mortgage payment that the company will be paying monthly will be fully deductible or just the interest portion? The building will be fully 100% use for business. Thy may rent out a little portion/area.
Thanks for your help. | |
| 10 January 2006 | |
| The building will be depreciated over 39 years and only the interest portion of the payment is deductible. Renting a portion does not impact this treatment. | |
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