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Updated over 8 years ago on . Most recent reply
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LLC use of income before tax
hello BP
If I have a LLC that gets 100k income yearly, can I use 100k to purchase a property
Or
I need to pay taxes on the 100k and only with what is left to purchase the property
Most Popular Reply
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@Tzook Bar Noy investment real estate, unlike equipment, is not used in your trade or business and the acquisition cost cannot be written off in the first year. Instead, you recover your costs via depreciation.
So to answer your, no you cannot write off the cost of real estate to reduce business profits.