Taxes & lost rent?
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Taxes & lost rent? (by Pat [VA]) Jul 16, 2021 12:34 PM
       Taxes & lost rent? (by Sisco [MO]) Jul 16, 2021 12:43 PM
       Taxes & lost rent? (by Deanna [TX]) Jul 16, 2021 1:15 PM
       Taxes & lost rent? (by myob [GA]) Jul 16, 2021 1:33 PM
       Taxes & lost rent? (by myob [GA]) Jul 16, 2021 1:35 PM
       Taxes & lost rent? (by Mike45 [NV]) Jul 16, 2021 3:21 PM
       Taxes & lost rent? (by RobertOntarioCanada [ON]) Jul 16, 2021 3:24 PM
       Taxes & lost rent? (by Pmh [TX]) Jul 16, 2021 4:42 PM
       Taxes & lost rent? (by Pat [VA]) Jul 16, 2021 5:21 PM
       Taxes & lost rent? (by WMH [NC]) Jul 16, 2021 7:06 PM
       Taxes & lost rent? (by P.B. [MI]) Jul 16, 2021 7:52 PM
       Taxes & lost rent? (by Steve [MA]) Jul 16, 2021 7:55 PM
       Taxes & lost rent? (by Pat [VA]) Jul 16, 2021 9:02 PM
       Taxes & lost rent? (by Robert,OntarioCanada [ON]) Jul 16, 2021 11:54 PM
       Taxes & lost rent? (by myob [GA]) Jul 17, 2021 7:21 AM
       Taxes & lost rent? (by Pat [VA]) Jul 17, 2021 6:45 PM
       Taxes & lost rent? (by Ray-N-Pa [PA]) Jul 17, 2021 8:29 PM
       Taxes & lost rent? (by LisaFL [FL]) Jul 18, 2021 6:21 PM
       Taxes & lost rent? (by Nicole [PA]) Jul 19, 2021 12:22 PM
       Taxes & lost rent? (by WMH [NC]) Jul 19, 2021 3:47 PM

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Taxes & lost rent? (by Pat [VA]) Posted on: Jul 16, 2021 12:34 PM

Due to Covid, we did not ask for monetary judgment, just wanted our problem drunk guy gone. It all started last November when he beat his baby mama & I called the police on him. She denied it so police could do nothing. 1st court date in January & Judge threw it out (technicality, my bad) I approached him about paying & behaving himself, & he did for a while but you know how that went.

Fast forward to today, he's out, we're working on unit (lots of holes in the walls), we don't know where he is or care to so don't want to serve & go back to court again. I know that you can claim lost rents on your taxes & have to send them a form (1099?) so they have to claim the benefit of unpaid rent on their taxes but what if you don't have anything to show but a successful unlawful detainer? Can we claim the loss on ours, without filing on him as a benefit?

We do have a CPA & will ask her but just wondered if anyone on here has had experience with this?

Taxes & lost rent? (by Sisco [MO]) Posted on: Jul 16, 2021 12:43 PM

You didnít collect rent during these months. No income was collected, so no income will be reported to irs. You donít claim anything special, just lower than normal rental income.

Taxes & lost rent? (by Deanna [TX]) Posted on: Jul 16, 2021 1:15 PM

Yes, I agree. That's how it was explained to me, when I had some lengthy vacancies as I pulled a disaster back together again. No income in, so no tax out. Being able to deduct losses from vacancies might come into play with short-term rentals, but not for regular rentals like ours.

Taxes & lost rent? (by myob [GA]) Posted on: Jul 16, 2021 1:33 PM

Where on earth do you people get your info? Benefit of un -paid rent???? He stiffed you and #1 you do claim the rental income cause you had none and #2-- don't know who the bigger iddi--it is-- the renter who stiffed you or the person who didn't seek or hasn't seeked "monetary" remedy?

My goodness!!!!!!!!!!! How do you folks make money I'll never know....

Gotta ask since when is paying rent, where you live, something to claim on a 1099????

Taxes & lost rent? (by myob [GA]) Posted on: Jul 16, 2021 1:35 PM

#1 you "don't" claim........ sorry. got excited....

Taxes & lost rent? (by Mike45 [NV]) Posted on: Jul 16, 2021 3:21 PM

To be clear, you do not report as income the rent that you did not collect, but you also do not deduct that unpaid rent from your income.

Taxes & lost rent? (by RobertOntarioCanada [ON]) Posted on: Jul 16, 2021 3:24 PM

Lost rent is a disaster for the economy where that effects the entire economy where there are no capital expenditures on the rental buildings or rental houses. Rental housing support a local economy where goods and services are bought locally not the third world. In the order to bring carbon foot print then the rental buildings and houses have to retrofitted to use less energy which requires a significant investment. When so thinks how large rental housing is where here it ranks very high in the economy here which is larger aero space industry. You can not run a country, province or state on views of the extreme left wing nuts who do not even represent 0.01 per cent of population. Count that in votes then voted out. I remember the time they voted for the Socialist Democratic provincial government in the province of Ontario where they only lasted one term. It common here the Socialists Democratic governments only last one term. They brought in penalties for repairs and renovations on rental buildings and houses where one cold November the workers who were tenants went home then the workers never voted for the Socialist Democratic government again.

Taxes & lost rent? (by Pmh [TX]) Posted on: Jul 16, 2021 4:42 PM

no tax on no rents. unless you are on accrual basis and so then would write of. now the repairs you have to do are expenses so may help reduce your overall tax bill a little as a trfr from schedule e

Taxes & lost rent? (by Pat [VA]) Posted on: Jul 16, 2021 5:21 PM

He was in the unit, not paying. We could not therefore rent the unit to someone that could/would. So that is the basis for my question.

I make money on my rentals myob, so don't pity me or feel that I am an idiot. My husband asked me the question. This guy was on SSI so no need to go after him, wasted time and money for another warrant.

Back in 2004, when I found this site due to our first eviction, I know I remember seeing this discussed. If you couldn't collect, you could claim it as a loss on your taxes (we had the money judgment on that one) but you had to also file the form with the govmnt showing it against them on their taxes. I know it sounds crazy, if you don't pay your rent it may be counted as income, or gain for you?

Somebody help me out on this please. Hope somebody can agree.

Taxes & lost rent? (by WMH [NC]) Posted on: Jul 16, 2021 7:06 PM

You can file a 1099-C on him, which is FORGIVENESS of debt. Forgiveness of debt creates taxable income to HIM but he could likely be in a very low tax bracket if he is on SSI and won't care, except he gets a bill for some change for the taxes and interest on the amount forgiven. If you do this, it is never collectable - you've forgiven it.

Taxes & lost rent? (by P.B. [MI]) Posted on: Jul 16, 2021 7:52 PM

I agree with the others who stated,

"No rent collected, so no income reported", except the monies that you actually collected.

You cannot claim lost rent on your taxes. Just be thankful he is gone. --67.22.x.xx

Taxes & lost rent? (by Steve [MA]) Posted on: Jul 16, 2021 7:55 PM

Unless you use the accrual method of bookkeeping you could not take an sort of deduction for unpaid rent.

Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

Taxes & lost rent? (by Pat [VA]) Posted on: Jul 16, 2021 9:02 PM

Thanks, WMH, yes, that is what I was trying to get straight in my head. You clarified that for me. I knew it was something like that.

I am ecstatic that he is gone, he was a menace to himself and everyone else. Left us with 2 cats & 5 kittens to deal with too. We had fixed two and this one evidently came back from wherever pregnant while we were having to keep our distance due to the eviction.

Rentals are going so fast in our area right now I know we will be able to get $100.00 more a month than we were getting.

I've already done a lot of the heaviest cleaning, oven, fridge, bathroom, just waiting on handyman finishing wall repairs & painting tomorrow, then I can do floors.

Taxes & lost rent? (by Robert,OntarioCanada [ON]) Posted on: Jul 16, 2021 11:54 PM

Here vacancy rates are at zero along one per cent on and off where now the industry minimum is 700 and above where some of those on social assistance are at the low 400 usually they have a addition problem. While some claim discrimination the reality is they have a long list of evictions along with unpaid utility bills which disqualifies them immediately as unpaid utilities and unpaid rent go hand in hand together. There people have no concept of reality where a economy only operates where most able bodied people work. Suppose tomorrow in a town or city no one showed up for work then these people would be amazed nothing would be open. A life style of not getting exercise along with smoking and drinking where some use illegal drugs those people have short life expectancy as seen that in the apartment buildings. Living in one of rental units opened up reality for me where you see what goes on. Best to move out of the lower end rental market then deal with people who work for living. Separated utilities screens a lot of them out as they can not sign for utilities. Less drama less problems as people who work care about the way they live.

Taxes & lost rent? (by myob [GA]) Posted on: Jul 17, 2021 7:21 AM

1099? + rented to someone uncollectable on SSI? Didn't go for money judgement due to COVID?

Fixing up place and not billing?

You've been doing this since at least 2004? Have you not done taxes since then?

Taxes & lost rent? (by Pat [VA]) Posted on: Jul 17, 2021 6:45 PM

Myob, are you dense? We've actually been doing this since late 80's, came on this site in 2004 when we had our FIRST eviction. I rented to his GF that WAS working, he was a tag along. Due to his violence SHE left. (Hey, give me some credit, I cannot control everything)

We did not bring money into the court case because we did not want it thrown out again! Due to Covid, the Judges have only allowed evictions due to ENDING the lease, so we gave him well over the 30 days notice and he still would not go.

Believe me, we pay plenty of taxes, did you not see my previous reference of having a CPA? Jeez Louise, you need to slow down & read more carefully. Your "comprehension" leaves a lot to be desired!

Billing whom? We are fixing the place & paying for it ourselves. A 400.00 deposit doesn't go but so far when they owe you for a couple months rent to boot.

Taxes & lost rent? (by Ray-N-Pa [PA]) Posted on: Jul 17, 2021 8:29 PM

If you want to report income to the IRS, then report the debt owed to you as excused and report that amount to the IRS as your former tenants income - NOT YOURS.

Once you do that you can no longer pursue it.

You report this to both the IRS and the last know address you have for your tenant

Taxes & lost rent? (by LisaFL [FL]) Posted on: Jul 18, 2021 6:21 PM


Her question was pretty clear. Itís an unusual circumstance and the reasoning she has given clearly shows knowledge. This isnít an everyday situation.

No need to be combative. People learn new things and have different experiences all the time- that is how we learn and adapt.

After this past unusual year you can bet many of us will be reviewing our practices. Remember we all have different ways of doing things. Pat (VA) is clearly a knowledgeable and successful landlord even if she has decided the hassle of pursuing a monetary judgement is not worth her time.

Taxes & lost rent? (by Nicole [PA]) Posted on: Jul 19, 2021 12:22 PM

Pat, google it but I don't believe you can do the 1099 route. I always thought that was for financial institutions, not individuals or businesses. I may be wrong and don't feel like looking it up again.

Taxes & lost rent? (by WMH [NC]) Posted on: Jul 19, 2021 3:47 PM

Nicole, Financial Institutions MUST file 1099-Cs when required. Individuals and Businesses MAY file them if they want.

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