rental not rentable

[oceanlovin'ea]

Very old TP has had rental house for years. Last year renters did not pay and she kicked them out. A relative of that renter started staying in the house, without landlord knowing about it. (She is very old and has had a stroke) They really messed up the house. When she found out, she had sheriff's department get them out.

but she wasn't able to get house repaired and rerented last year. Can I still take her taxes and insurance for the year? Seems like I read that somewhere, but couldn't find it.

Linda

[ChEAr$]

Real estate taxes, yes. But since she was not actively renting or trying to rent,
no deduction for anything else.

[Gretel]

Linda, you say it was rented last year, right? I don't think that you TP wasn't able to collect rent has any bearing on the fact that her rental expenses are still deductible up to the time when they moved out, or maybe even up to the time when she found out about the relative.

How did she find out? Did she try to rent again?

[oceanlovin'ea]

Because of her age and health problems, she has to depend on others for a lot of things. She had someone who took care of the yard and did other odd jobs. I think the yardman told her someone was in the house. By the time she got the sheriff to get them out, they had pretty much destroyed it. I am not sure if she will try to fix it up and rent it again or not. It is in a high crime area.

She is very old. She had a stroke and it affected her speech and her tongue. I can hardly understand her. Her only son died in September or October. She might just let the house sit empty and leave it for her heirs to take care of when she is gone.

But I think her intentions in the beginning of the year was to rent the house like she has done for eons of time. Just too big a job for her now.

I'll take her taxes on the property. That will help her a little bit.

Linda

[AZ-Tax]

I am leaning towards Gretel..

Linda, you say it was rented last year, right? I don't think that you TP wasn't able to collect rent has any bearing on the fact that her rental expenses are still deductible up to the time when they moved out, or maybe even up to the time when she found out about the relative.

How did she find out? Did she try to rent again?

This sounds more like a plot for a movie. "The moochables" I am leaning Schedule E for all of 2009.

[thomtax]

My thoughts, for what they are worth, is that the house was either rented or, as far as the owner was concerned, for rent. The fact that she had deadbeats for tenants and that they would not pay, is one of the ordinary business problems you run into when you have rental property. In some places, it takes forever to legally get a dead beat out of a house and no rent is collected during this period.

So, I would take the expenses.

LT

[oceanlovin'ea]

would help her

It would help her if I could take the expenses. I will have to see if she can come up with the expenses she had.

She cashed in savings bonds to the tune of over $12,000!!

So she owes big time.

Linda

[AJsTax]

I agree;

My thoughts, for what they are worth, is that the house was either rented or, as far as the owner was concerned, for rent. The fact that she had deadbeats for tenants and that they would not pay, is one of the ordinary business problems you run into when you have rental property. In some places, it takes forever to legally get a dead beat out of a house and no rent is collected during this period.

So, I would take the expenses.

LT

It was not her fault they did not pay or ruined the house. It is not like it is a new purchase getting ready to rent.
Take the expenses and help the client and rest easy.