How do you enter a "loss" of unpaid rent (empty units) for rental property?

Question

I have a duplex that was purchased in 2006. Spent a month rehabilitating it and it was avail for rent beginning Sept 1 2006 but neither unit (prop mgmt issues) rented until early 2007. How do I account for the entry on my federal taxes?

Answer 1

Vacant rental property. "If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant."

Answer 2

2

Answer 3

You didn't LOSE the rent. You didn't get any!

Assume for a minute that you didn't get rent the whole year. But you have the expenses. The expenses get put in your return no matter if you received rent or not.

Since you had no rental income, the rent INCOME line is "0".

If you had rent, the rent line would be "$X,000".

You may have a loss whether you received rent or not!

Counter Question: How big is a hole?


--A Damn Fine Tax Advisor

Answer 4

there is no loss for unpaid rent. Rental properties have risk attached to them and no renters is the risk involved in that investment.

Answer 5

You don't enter a loss of rental that wasn't paid because the units weren't rented. There wasn't income, so you don't have something to subtract back out.

Answer 6

utilities and maintenance expenses. lost rent is not an acceptable loss, because no one wanted to rent then.