Rental loss

Forum|Forum|3 years ago
March 22, 2023
3 replies
23 views

Taxpayer has a family member in rental property and they did not pay rent all year, but taxpayer still paid all expenses. Would this still go on the sch E or at what point of not paying rent would this have to go on the schedule A? I think this is the 2nd year with no income from the rental (drug related situation for nonpayment)

Thank you

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T

taxes96786

Level 8

Family living there, not renting.
This is either a 2nd home or an investment property that is not producing income. No deductible expenses other than, possibly, property tax on Sch A of 1040.

Do you do any research? Do you have access to Pub 17 or 1040 instructions?

I know you took over a tax business with no experience but, it would be in your best interest to make use of IRS tutorials, etc

MGC94Author

Level 7

They are suppose to be paying rent. The taxpayer lives in FL. This is a NJ rental property. In the past they have paid and reported income, but now (drugs) they are not paying. Taxpayer is still paying all the expenses