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.
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.