Hello,
I inherited property in early January 23 that was likely soon to be considered a nuisance as there were many police calls/drug use. I never received any rent and let the only current tenant know that he had to leave in December 22 and he was gone by the end of January 23. This was a 2 unit property with one side vacant due to disrepair. Because of the costs associated with renovating the very old structure and the reputation of the building, I had the building demolished in May 23 to try to get rid of the reputation of the location, and keep peace with the neighbors as the surrounding neighborhood is not a bad area. In addition to that demo cost, I have continuing costs for taxes and keeping the sewer and water connections as I intend to rebuild rental property in the future when economic conditions warrant.
Can I claim these as losses in investment property in 2023? I didn't receive any rent, so it kicked me out of that loop in the program.
