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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3173
Experience:  IRS licensed Enrolled Agent and tax instructor
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I'm renting my out of state property to my daughter and her

Customer Question

I'm renting my out of state property to my daughter and her partner. Her partner lost his job last year and had no income to pay the rent. Can I file the rental income as a loss? I'm confused whether to file 8582 or not.
Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.The answer is no. You cannot treat income you never received as write off or bad debt. If the income was never included in your taxable income, not receiving is not cannot be deducted.
Customer: replied 1 year ago.
They paid a total of $600 which includes expenses for minor repairs. The rent is $1000 a month. I still can't write off what they didn't pay as a bad debt?Thank you.
Expert:  emc011075 replied 1 year ago.
No, you cannot. You lost income that was never taxed before. You can only deduct expenses or loss of funds/income that had been previously taxed (included in you taxable income).
Customer: replied 1 year ago.
Thank you. I greatly appreciate your quick reply.
Expert:  emc011075 replied 1 year ago.
You're welcome. Is there anything else I can help you with today?
Expert:  emc011075 replied 1 year ago.
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.