Can I use the purchase of a rental property through my business as an asset to lower the taxable income of the business?

Forum|Forum|5 years ago
January 28, 2021
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TurboTax Self Employed Online

Carl11_2

Employee

It may not be that simple.

What kind of business? sole proprietorship? single member LLC? multi-member LLC? S-Corp? C-Corp? Partnership?

Who is the listed owner on the deed? You? Some other business entity of some type? Who is liable for the mortgage? You? Some business entity of some type?

Generally, the business has to be the legal owner of the asset in order to claim/depreciate it. That's because an entity (be it a person or "other") typically can not depreciate that which the entity does not own.

austinstilleyAuthor

The property was bought through my business (which is an LLC). I am the sole owner of the business. The land and rental is in my business name.

Critter-3

If this is an unincorporated single member LLC that ONLY has a rental in it that is NOT run as a B&B or MOTEL then you report the rental on a Sch E and not a Sch C.