real estate - business or personal


Hi, is it advantageous to setup a business then purchase a property (i have no intention of personal use). Will I be able to write off expenses such as my vehicle, my insurance, and the entire mortgage?


david ingram replies;

As a rule, it is NOT beneficial to incorporate a company for the ownership of a rental property.

You can write off most expenses for a rental including the interest on a down payment loan, the mortgage and even a credit card if you use the credit card to buy something for the rental property.

You can NOT write off an office in your home for a rental property and you can not usually write off a vehicle unless you are using a truck to haul around stuff for the rental and then it would be a very small portion.

For a good description of what to write off, etc.,  go to and read the 'rental' secition in the Tax Guide in the top left hand box. �