How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark Anderson Your Own Question
Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 541
Experience:  Tax attorney and accountant
Type Your Tax Question Here...
Mark Anderson is online now
A new question is answered every 9 seconds

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: 1 year ago.
Category: Tax
Expert:  Mark Anderson replied 1 year 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.