Tax Deductions For Business Assets Loss Often Lost by Investors
I have met investors who made serious tax errors because they didn’t seek professional advice. One person had $78,000 of accrued interest from negative amortization on a rental property that became deductible when the loan was refinanced and paid off. However, the accrued interest was not properly reported by bank until several years later. When a property owner has a negative amortization mortgage the accrued interest is deferred until the loan is paid off or until the loan changes to a fully amortized loan. The interest can only be deducted when paid, assuming the taxpayer is using the cash method …
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