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June 1, 2019
Question

Can I deduct the down payment amount on a building I purchased for our business?

  • June 1, 2019
  • 1 reply
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The building purchased is the storefront for our business.

1 reply

Employee
June 1, 2019

The down payment is part of the cost basis of the building. The cost basis of the building is used to calculate depreciation over a period of 39 years for commercial real estate. You will also be able to deduct mortgage interest, property tax, and repair costs on the building each year.