Can I designate lease pymts during 1st part of NNN lease as return of my principle?

If I inject 1MM into a NNN deal and finance the rest from a lender, I know I can deduct as an expense the interest paid to the lender. I was hoping to designate some of the rest of the lease pymt made by the tenant as a return of principle and thereby reduce my personal income tax liability. Thoughts on if this is OK with IRS and maybe how to structure for max tax free return over shortest time?
In Buying Property - Asked by Dave K. - Apr 26, 2011
Report Abuse
Answer this Question

Answer(s)

Rob B.
Chandler, AZ

Dave....
You have asked questions having to do with the lowering of taxes through particular entity formations and payments methods in the past. A CPA or tax attorney who understands the structure and tax position of your assets and the income thereof best answers this type of question.
I don't believe there is any professional that will give you a direct answer to your question. The mitigation of tax payments is a national honor, but such action should be taken by a professional acting under existing IRS regulations.
The application of those regulations should only be done through a review of a person, or entity's, specific operation.
Onward and upward... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Apr 27, 2011
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question