The Eviction Moratorium provided help for one set of individuals but created a problem for another set of individuals: the landlords.
Without going into details of the Eviction Moratorium, you are able to do the following:
- take your ordinary and necessary expense deductions
- claim legal fees for any legal work performed in attempting to collect the rent or filing eviction notices. But as you know, filing the eviction notice is one thing, but unfortunately, as you know, it is temporarily meaningless.
- you cannot take a deduction for unpaid rent. This is due to the fact that landlords are typically cash basis taxpayers and since they have not picked up the income, there is no corresponding tax deduction for a loss.
- the best you can do is work with your tenants; get partial payments, etc.
- best advice is to also work with your legal counsel.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
