Prepaying a loan on a Commercial Building?


R

Ralph

I really hope my question is not too simple for posting
here. But tax consequences can be very complicated, so I am
asking for advice..

A few months ago I bought a commercial office building, and
I (my business) occupy part of it.

I have a loan which has no restrictions on prepayment.

I am in a financial position now where I am able make
additional payments on the principal.

What are the questions/ ramifications I should consider
before pre- paying this loan?

I admit this appears to be a very simple question. In part
I am wondering about consequences, if any, on tax
deductions, and depreciation...

I thank you all in advance. If I have omitted important
facts, I will do my best to answer any questions.
 
Last edited by a moderator:
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S

Seth Breidbart

Ralph said:
I am in a financial position now where I am able make
additional payments on the principal.

What are the questions/ ramifications I should consider
before pre- paying this loan?
Your (deductible) interest payments will decrease or go away.
I admit this appears to be a very simple question. In part
I am wondering about consequences, if any, on tax
deductions, and depreciation...
No effect on depreciation.

Seth
 
Last edited by a moderator:

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