The business can only deduct interest expense. If you own the property personally, and the loan is in your personal name (OK if business is a co-borrower), then the business could deduct the entire payment as rent expense. However, you’d then have a separate schedule on your tax return for this commercial real estate. You’d show the rent payment as income, and then deduct the interest expense there. If the business is an S-Corp then shouldn’t be much of a difference either way. . .

If you’re a business owner with commercial real estate, you really should have a CPA (or experienced tax accountant) prepare your taxes. . . .

Oh, you can’t deduct the entire loan payment, as principal paid is a repayment of money lent to you!