I have a rental that was damaged to the point of tear down and garbage left on the property during covid.
It was in litigation for 3 years due to the timing. I was unable to collect rent and had massive expenses in legal fees, and clean up costs for these years.
I have had this rental since 2007, but was unable to claim it as a rental since 2020 as I had no income on it.
I have deducted the attorney fees, but can I deduct a loss of rents or do the expenses and depreciation just get added later when it is rebuilt enough to rent it out again?
Also, if it had been a part of an enterprise with our other two rentals, instead of taking safe harbor independently for each rental, would it have made a difference in how it was dealt with?
