Unpaid Rent Treated As An Expense?

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Is it possible to treat rent that went unpaid by tenants as an expense? If so, where is this entered on the tax forms?

Comments(2)

  • NewKidInTown38th January, 2006

    If you are a cash basis taxpayer, rent that you do not collect is not an expense, but it is also not income.

    If you are an accrual basis taxpayer and have already booked the accrued rent as revenue, then you use an expense acccount (perhaps called Rental Loss) to offset the revenue you already booked with the unpaid rent.

  • InActive_Account9th January, 2006

    OK thanks for the info. I think most businesses can write-off uncollected debt, so it seems like there should be a way for landlords to do it also...

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