How long can this go on?

[Possi]

Rental property with no renters for 3 years... really? How long can this go on?

[Burke]

Start asking some questions. Are they advertising? Why no renters? If they are not actively seeking a tenant, it is no longer rental property. And that may have been back awhile.

[Possi]

Needs repairs

It has always been, "needs to be fixed up..." .... She dropped off, and I didn't get a chance to talk to her. I'm calling her now.
If it still "needs to be fixed up" and has not been advertised, that's it. If she is advertising it, I'm going to suggest she get a property manager. Geez...

[Burke]

Also, note whether her documents show any repairs or improvements for the last 3 years. Sounds to me like she has let the ball drop because she does not want to spend the money, and so be it. No more deductions because it is not being actively rented. Vacancies can be allowed for, say a few months. After 6-9 months, something is amiss and it appears to be unrentable. So take it off the market until it is fixed and somebody wants it.

[Possi]

That's what I did...

She just called me back. They are simply lazy and not aggressively looking for renters. It's gone. They have been taking losses the last 2 years, but not for three. 2015 return, they will owe some taxes!

Thanks for your input. I appreciate the affirmation!

[taxea]

Tell her she needs to amend the returns from the time it went out of service because she wasn't forthcoming with the information she should have provided to you.