Originally Posted by Winston001 Just a quick note: if you aren't making a profit, you aren't making money. The problem is many people think what you express above - I used to as well. Here's how it actually works: you buy a block of land or building. You borrow the money. In the first year you make mortgage payments of $20,000. You think you can deduct all of that from your gross business turnover right? Wrong. Lets say $10,000 is interest - that is deductible. But the other $10,000 is reduction of debt - and that ...