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Bookkman
New Member

Can I claim rental loss due to COVID-19? I lost 5 weeks of rental on vacation property.

FEMA has declared COVID-19 as a disaster so I was wondering if I can claim the 5 weeks on rental income I loss.
4 Replies
Mike9241
Level 15

Can I claim rental loss due to COVID-19? I lost 5 weeks of rental on vacation property.

the rent you never got is not a deduction. 

Bookkman
New Member

Can I claim rental loss due to COVID-19? I lost 5 weeks of rental on vacation property.

Even if it's claimed as a disaster? Like a hurricane, COVID-19 is classified by FEMA as a disaster.

Jlbcskinner
New Member

Can I claim rental loss due to COVID-19? I lost 5 weeks of rental on vacation property.

Even if I had contracts for those weeks? They were weeks already booked and paid for, but forced to be canceled and refunded. Therefore, wouldn’t that be loss of income that I should be able to claim?

DawnC
Expert Alumni

Can I claim rental loss due to COVID-19? I lost 5 weeks of rental on vacation property.

Unfortunately no, you cannot claim a deduction for lost rent on your tax return.   If you receive an income document for the amounts you refunded, you have to claim that income, but you can report it as ''refunded'' to offset that income.  You don't have to pay tax on that income, but you don't get to take a deduction either.   To report the income as refunded, there is a category for Returns and Refunds in the Self-Employment Income section.   @Jlbcskinner

 

You may still deduct the ordinary and necessary expenses for your rental properties, but as cash basis taxpayers, rent you did not receive is not a deduction.  

 

When you have items that are lost or damaged as a direct result of a natural disaster, and you live in a federally declared disaster area, you may be able to take a tax deduction for the value of the property that's not covered by your insurance.   The lost or damaged items can be personal property, business property, or investment property.    Unfortunately, the rent that you did not receive does not count as a disaster loss.  

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