I have a storage rental buisness, am I applied to tax a loss on renters that leave and don't pay?

ANSWER

Expert Thomas Graham iii's Answer:

I assume you meant to "take a loss" when renters leave and don't pay.  Unfortunately you would not be eligible for a tax deduction based on this situation.  In this instance you would have had an A/R for the rent but you never would have received cash.  You would then write off the A/R as bad debt which would also remove the "income" from your revenues.  Therefore you shouldn't be getting taxed on the "lost" revenue to begin with.

Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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78 Ans.