Have you ever sent a 1099 to a former tenant that you could not collect from? Do you have to have a judgement to do this?

We have a few old judgements/bad debts that we know we will never be able to collect on from the former tenant. We would like to send out 1099's on these and was wondering if anyone had done this and if it "sticks". Will they be in trouble with the IRS if they don't declare this income on their taxes?

It is here for quick reference:

bbs2.mrlandlord.com/display.php?id=14390773

N&P,

In Indiana a court judgment is good for 10 years and can be renewed with a simple letter to the court.

We NEVER let go of a judgment. It’s AMAZING hiw many old judgments get paid even years later.

Plus Indiana court is easy on colection process.

Even without a judgment if you have an address to send a 1099, chase the debt.

If you chose the 1099 route the important step is to WARN the debtor to encourage him to pay.

Too quick...

Otjer than collecting I have bigger fish to fry than messing with deadbeats.

If they are broke sending a 1099 won’t make any difference except to drag me down to wallow in their mud.

Take the high road and move on.

Too quick...

Otjer than collecting I have bigger fish to fry than messing with deadbeats.

If they are broke sending a 1099 won’t make any difference except to drag me down to wallow in their mud.

Take the high road and move on.

Too quick...

Otjer than collecting I have bigger fish to fry than messing with deadbeats.

If they are broke sending a 1099 won’t make any difference except to drag me down to wallow in their mud.

Take the high road and move on.

It should be noted that Brad's situation is rather unique. MOST states do NOT allow you to endless renew a debt like Brand can in Indiana. In most states, there is a 5-10 year statute of limitations on debt (either from the date the date was incurred or the last time a payment against it was made). (Indiana actually has a 10 year limit too, but allows for a renewal at the 10 year mark.)

I mention this because that MIGHT change the situation for some. If your state has a 7 year maximum and you're 6.75 years along, then maybe issuing the 1099 makes more sense for you than it would for, say, Brad.

- John...

It's not $750 in their pocket if they weren't going to pay you the $1000 anyway. It's just $250 OUT of their pocket that they were never going to give to you.

So, again, I only see it being something to do if there is no time left due to statute of limitation on collecting debt. If you're about to hit that, then it might make sense if it makes you feel better. (But, I agree, no help to your bottom line either way. Sometimes some people just do it to try to get that last bit of "revenge" against someone who basically stole from them when there are no options left.)

- John...