Quote:
Originally Posted by fastfredracing
I took over the biz 2 years ago, and this year, is the first year, we have ever made a real profit .
I have one tenant just starting to drift behind, sneaking up on 3 months. She works 2 jobs, but lost her second job due to covid.
From past experience, once they go 2 months , you are never getting paid .
The other, has not paid in over 6 months now . Says she contacted covid, a few months back, and lost her job . She was behind before this.
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I would have invested in a RE attorney who is familiar with local laws yesterday.
How long is that moldy bowl of yogurt gonna remain in the fridge?
When other tenants find out, what are they going to do?
I believe you can file a 1099 on them for the unpaid rent. (I believe they have to pay IRS taxes on this. Oops.)
It might require a judgement but maybe not.
It turns your missing rent into a 'debt income not received'...and a tangible business loss.
You get to deduct that missing income additionally from your total net.
Something like that. YMMV. I ain't no tax attorney.