ILLMAS Posted July 1, 2014 Report Share Posted July 1, 2014 What is the difference for tax purposes, TP has multiple commercial building, the first building the tenant has not paid the rent for a while, but the TP has to maintain the building and pay other operating expenses, the eviction process is taking long, can the TP deduct the expenses even though there is no rent collected? Second building, TP has been trying to rent another building for the past years, no one is willing to pay the rent asked, the maintenance cost of the building is high, the property has always been available for rent (for profit purposes) and the TP in constantly showing it, can he deduct the repairs and depreciation? Thanks Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted July 2, 2014 Report Share Posted July 2, 2014 I'd take the expenses on both. It's basic business sense, you must maintain the property whether it's rented or not. Actually, the first one IS rented, even if he has not been able to collect. 1 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted July 2, 2014 Report Share Posted July 2, 2014 If there are no related parties "renting" property #1, then yes, your T/P won't have any problem. Rich Quote Link to comment Share on other sites More sharing options...
Lee B Posted July 2, 2014 Report Share Posted July 2, 2014 I would make some inquiries about # 2 as to it's availability and does he have documentation re: showing it to prospects etc. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 8, 2014 Report Share Posted July 8, 2014 And, is he asking fair rental value for the location... Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted July 8, 2014 Author Report Share Posted July 8, 2014 The rents are competetive to other locations in the area. Quote Link to comment Share on other sites More sharing options...
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