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Where Taxpayers and Advisers Meet

Mortgage payments on property

chorne1966
Posts:18
Joined:Tue Aug 18, 2015 1:29 pm
Mortgage payments on property

Postby chorne1966 » Sun Sep 10, 2017 11:08 am

I am looking at buying a commercial property with a commercial mortgage through a business - BUSINESS A

The business would then lease the property to another business BUSINESS B which would obviously pay rent.

On this transaction would any of the loan costs on the commercial mortgage be off setable against the profits made by BUSINESS A?

A complication would be that potentially Business B would grant a licence to rent out the premises back to BUSINESS A on an adhoc basis paying a daily licence rent.

Any thoughts on this transaction would be appreciated.

Chris

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