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?
Unfortunately I don’t have any expertise in the area of phantom income. I recommend you check out our directory to see if you can find a local tax expert in your area who could assist you. I have included the link below:
Best of luck,