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April 17, 2022
Question

Renting Land while Commercial Building is renovated

  • April 17, 2022
  • 1 reply
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How do you claim rental income and expenses if an asset (building) is under construction for the whole year, but you are able to rent part of the land. I understand that any additional depreciation can't be claimed till building is complete, but can other expenses like utilities/ mortgage interest/etc be claimed if land that is apart of property is being rented during the construction process?

    1 reply

    April 17, 2022

    Against your land rental income, you can deduct a portion of mortgage interest and property taxes corresponding to the value of the land being rented compared with the value of the whole property.

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