The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Rollin on March 15, 2013, 12:26:49 PM

Title: Potential Deductions for Rental
Post by: Rollin on March 15, 2013, 12:26:49 PM
I know I can ask my tax accountant this, but at the moment he's a bit busy :)  I will confer with him after tax season.

When you have a renter move out and you do not get your normal rent do you deduct that as a loss of income?  What if you had a home ready for rental for the first time on March 1, but didn't have a renter until April 1 - is that a "loss?"  My thought is "no," but I thought I'd ask anyway.
Title: Re: Potential Deductions for Rental
Post by: Chiron on March 15, 2013, 12:57:13 PM
I believe that is "vacancy" and it results in no deduction.  But, you're also not liable for income during that time, because there was none.  Carrying costs, like utilities, mortgage interest, taxes and insurance are still deductible for the vacant period.
Title: Re: Potential Deductions for Rental
Post by: Rollin on March 15, 2013, 01:31:16 PM
Thanks Chiron, that is what I thought.