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Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 539
Experience:  Tax attorney and accountant
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I evicted a tenant not meeting the lease requirements (including

Customer Question

I evicted a tenant not meeting the lease requirements (including not paying rents for months, late fees, bounced checks, and significant damages to the property). After several years of trying to find this person through a law firms collection department, she was served and went to court. I testified and we won the settlement of nearly $30k. While we attempted to garnish wages, she claimed she was a contractor and not generating enough to make payments. Now, it is clear after 5 years, I will never see this money. My question: Is this a debt that can be written off via the rental property? Treated as an expense?
Submitted: 5 months ago.
Category: Tax
Expert:  Mark Anderson replied 5 months ago.
If you are a cash basis taxpayer, then you cannot write of the bad debt expense. You can write off your expenses in trying to collect. You might want to file the transcript of judgment in Superior Court. It is a lien on property. If they try to buy a home or refinance, then you might get paid. You can also turn the judgment over to collection.