Corrado79
New Contributor
These two question are for Diane, or anyone else similarly experienced in accounting. I recently set up a new LLC and purchased a piece of rental property (condo-hotel). I was wondering to what extent can I deduct the closing costs? I know that for a personal homeowner, only mortgage interest and property taxes can be deducted (and the points charged on the mortgage under some situations), but since my business purchased the property, can I deduct the closing costs as a business expense, or must they be capitalized into the property?
Also, what are the rules in terms of depreciating the property if it's a condo (i.e a vacation property) versus if it's a genuine rental/commercial unit. Does the fact that it's rented out and receives rental income sufficient, or does the property need to have some kind of official "commercial" demarcation in the Note/Deed?
Thanks in advance!!!
Also, what are the rules in terms of depreciating the property if it's a condo (i.e a vacation property) versus if it's a genuine rental/commercial unit. Does the fact that it's rented out and receives rental income sufficient, or does the property need to have some kind of official "commercial" demarcation in the Note/Deed?
Thanks in advance!!!
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