Tax deduction for vacancies???? - Posted by Kathleen Cory

Posted by Frank Chin on October 17, 2007 at 13:53:42:

That’s true.

I have to pay utilities during vacancies that tenants cover while they’re there, such as electric and gas. So my expenses adding in advertising, getting the place ready etc., thus deductions, are actually higher during vacancies.

What I was thinking of answering the question was I’ve seen large apartment complexes total up all the rental, vacant or not, as gross revenue, and then deducting out vacancies separately on a separate line.

Frank Chin

Tax deduction for vacancies??? - Posted by Kathleen Cory

Posted by Kathleen Cory on October 16, 2007 at 06:43:21:

I need to send in my extension today. Are vacancies considered loss? I had trouble accessing the archives in this section. Thanks K

Usually NO … - Posted by Frank Chin

Posted by Frank Chin on October 16, 2007 at 09:59:39:

Kathleen:

If you’re on a “cash basis” for accounting, and most folks doing rentals are on a cash basis, then it’s NO.

If you collect the rent, it’s income, if you don’t collect it, it’s not income, BUT NOT a loss.

Frank Chin

Re: Usually NO … - Posted by JOHN HASLACH, CPA, MST

Posted by JOHN HASLACH, CPA, MST on October 17, 2007 at 13:27:59:

If you are cash basis you cannot deduct cash owed to you because you never reported it as income. You can however, deduct expenses on the rental while vacant.