Deadbeat tenants — a tax perspective

You’re angry. Frustrated. Furious.

But hang on for a second. Step back from your emotions and take a clear-eyed look at the tax implications of the situation.

There are important facts you really need to understand, and we’ll explain them to you when you read my helpful new article titled Tax Tips: Tax Implications of a Deadbeat Tenant.

You’ll learn how to handle the loss of income. Unpleasant fact: You can’t deduct the loss of unpaid rent. But don’t forget. You’re getting your tax-loss deduction up front because you’re not including the unpaid rent in your income! You’ll get the whole story when you read the full article.
We’ll tell you why you can deduct depreciation. This is a real plus! You see, the depreciation deduction is arguably the best deduction because it requires no outflow of cash on your part. We’ll give you all the details when you read the full article.
We’ll explain why you should keep trying to collect the unpaid rent. An obvious reason is that you just might recover the money you’re owed. Another reason is that if you let a tenant live in your property rent free, you could get slammed by Section 280A of the tax code. It could force you to lose deductions for depreciation, insurance, and maintenance. We’ll explain the full implications of the law when you read the full article.