ILLMAS Posted July 1, 2014 Report 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
kcjenkins Posted July 2, 2014 Report 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
Richcpaman Posted July 2, 2014 Report 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
Lee B Posted July 2, 2014 Report 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
Lion EA Posted July 8, 2014 Report Posted July 8, 2014 And, is he asking fair rental value for the location... Quote
ILLMAS Posted July 8, 2014 Author Report Posted July 8, 2014 The rents are competetive to other locations in the area. Quote
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