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  • Writer's pictureColin Dubel

What are the Parts of a Commercial Mortgage Payment and Transaction Fees that can be Tax Deductible?

There are several parts of a commercial mortgage payment and transaction fees that may be tax deductible, including:

  1. Interest Payments: The interest portion of a commercial mortgage payment is generally tax deductible. This includes interest paid on the principal amount of the loan, as well as any interest paid on points or other fees.

  2. Property Taxes: Property taxes paid on the commercial property are typically tax deductible.

  3. Loan Fees: Loan fees such as origination fees, appraisal fees, and processing fees may be tax deductible, but the deduction may need to be spread out over the life of the loan rather than taken all at once.

  4. Closing Costs: Some closing costs, such as title insurance and legal fees, may be tax deductible, but others, such as transfer taxes, may not be.

It's important to note that tax laws can be complex and vary depending on individual circumstances, so it's always best to consult with a qualified tax professional to determine which parts of a commercial mortgage payment and transaction fees are tax deductible for your specific situation.


If you have any questions about this article or would like to discuss a scenario of your own with our team, please feel free to contact Colin Dubel at colin@harborwestcommercial.com or 949-735-6415.

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