Name change to be more secure as this is a public forum. If you've been reading my posts, you'll know who I am.

Scenario 1: If I want someone to leave the lease early; they've done nothing to warrant an eviction but we need to go in a different direction, I'd give them the happy clause, sorta. My happy clause would let them leave between specific dates, effectively turning their lease into a month to month. If an early move is done, Because I am forgiving the lease after they leave, is it legal for me to file a 1099 for the forgiven rent if I don't rerent until after the end of the lease that is in place? I don't go to court as this is a motivation for moving earlier. With a 1099, the person would need to pay taxes for the rent forgiven.

Scenario 2: Inspection was completed for two ladies who recently moved, but still on lease. If I do not rerent the rooms/unit until after the lease ends, same question as above, sorta. Want to know in this case, do I need to go to court and get a judgement before I forgive the money owed?

If "someone " is not going to leave it would be pretty difficult to make them. (although NE had some ways--)

I see this reference to 1099's all the time here for rent FORGIVNESS! You have no standing for 1099. Your loss is taken on schedule E as not receiving income but is for a year aggregate loss for you. It's your loss not the tenants gain--heck they may have moved into another place and paying rent there? There is no gain!!!!

Your mention of "moving on" -- now that was pretty strong.

The only tax on forgiven debt that can be collected by the IRS is mortgage debt relief.

You take a mort out and don't pay it back-- that is considered income by the IRS.

Unless the rent is Prepaid - the overwhelming majority of Landlords use the Cash method of accounting instead of the accrual method. Using the cash method of accounting, you don't get income until it is given to you.

So if you value your sanity enough to allow some boarder line tenants to go, the question at hand is, did they pay rent for the period that you allowing them to leave. I suspect the answer is no they didn't pay. So if you don't have the cash in hand, you can't forgive it.

Your question focuses on the matter - what does "opportunity cost" really cost the business operator. That is a tricky question - in life there are no do overs. If you have tried to train these tenants, and then tried to retrain these tenants......and you still are not getting the results you want, either your training system is broken - or you need to cut your losses.

Scenario 1 is a wash to me. You want them out just because and they leave. Why would you want to punish them with a 1099?

Be happy that they left so you can go the direction with the property that you wanted.

Scenario 2 is a little different, but not much to me. If they moved on why not get the place rented, or sold? They are gone. It is much easier to collect rents from a new tenant than one who has left.

I also agree that I wouldn't forgive the debt. I would pursue them with a court judgement that follows them around. You aren't getting the money with the forgiveness but you can make them remember what they did for a while.

You've read my story under another name folks. I have been trying to rerent for months. No qualified prospects thus for. That is unfortunate. During that time, I've continued to update my ads, and as the 2 leaving did not qualify for the places they applied to, the availability had to be changed in the ads. Still no qualified prospects. Thought I had one, but doing a deep dive, found a substantial judgement and shut her down. Recently the remaining tenant I want gone, Option 1, Yes, RAY-N-PA for my sanity, provided a prospect as a roommate. No go, less qualified than some of the other prospects along the holiday months.

Marcia did visit Saturday to look the place over and felt it would work well as a Travel Nurse rental; Several hospitals nearby in all directions. We are also approaching the time of year that works well for rentals in our area.