How to reduce tax on Phantom Income from rental of commercial property?
All the rental income that comes from the lease, goes towards pay down the mortgage, with zero cashflows. Initially, there was no issue as depreciation and interest were enough to cover the “Phantom” income. But over-time, the interest expense of mortgage has reduced so much that LLC that owns this property has to pay a substantial (>$25K) tax. Other than depreciation, interest and administrative costs, are there other deductions that can be used to reduce the tax bill?
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