I am trying to buy a commercial property, am I best to re mortgage my home, or get a loan on the commercial property? If I re mortgaged my home how would the business pay the mortgage and would it be eligible for tax relief?
Thank

Hi jwills, is your business a sole trader or LLC (or similar)? Simply because we'd need to ensure that the correct legal entities were involved in the buying process - I'm not sure how the mortgage rules will apply in your instance, but certainly in the UK where I'm based, the rules for commercial and residential real estate lending can be markedly different.

I'm not sure, but to the company, you are the bank. As the bank, you will be receiving interest from the company. The company should be able to depreciate the property and deduct any interest paid to the bank.

As for yourself, you have to show any interest earned as income, but you would still get to write off the interest you pay on the home loan. You should run this by an CPA to make sure.

ya its beneficial for you if you buy the commercial property, it is easy for you if you take loan against the commercial property.