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Wilson Pereira's profile image
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Wilson Pereira
  • Member since Sep 11, 2018

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Wilson Pereira's profile image
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Wilson Pereira
  • Member since Sep 11, 2018
Wilson Pereira
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Tax, SDIRAs & Cost Segregation

Real estate mortgage and taxes

Wilson Pereira
Posted

I have my rental real estate principal and interest mortgage payments going out of my LLC bank account. I believe only interest and real estate property taxes are tax deductible. How do I account for mortgage payments in my P&L reporting for my LLC? Do accounting software like Quicken automatically take care of this or do I need to do something different to handle this correctly?

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Ashish Acharya
#1 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • FL
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Originally posted by @Wilson Pereira:

I have my rental real estate principal and interest mortgage payments going out of my LLC bank account. I believe only interest and real estate property taxes are tax deductible. How do I account for mortgage payments in my P&L reporting for my LLC? Do accounting software like Quicken automatically take care of this or do I need to do something different to handle this correctly?

your book income statement  and tax statement is going to be different.

You can reclassify your principle portion to mortgage balance. Credit mortgage payment and debit mortgage payable. That is one way to do it. There are many other ways to handle this depending on how you want to see your books. 


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