How do you show rental losses from partially-vacant multi-family?

[wyte17]

We recently purchased a 6-plex, in mid-November, with 5 occupied units.  The 5th tenant failed to pay rent in Nov and then moved out prior to Dec rent, without notice.   The 6th unit was always vacant and is not rent-ready anyway--requires rehab first.  The software doesn't seem to walk me through partial-vacancy scenarios, just asks if the entire property has been rented the entire time i've own it...any tips?

[DoninGA]

Loss of rent is not an expense or deduction for a rental property.  If the property was available for rent but had no renters/vacant then you can claim any qualified expenses for the property during the time it was available for rent.

[view2]

Residential rental income is passive income and the bottom line is the same when you list in Turbotax a multiple unit complex as a single entry.

If you list as separate units with different address you must prorate total cost and [land value land is not depreciated] to each individual unit.

It depends on your individual intense attention to keeping track of the each  individual unit rent history. Record keeping and allocation of cost is more detailed.

Personally each unit in a complex is listed as a single unit with addresses 132-A, 123-B,123-C,123-B etc.[Calculate the  percentage of cost  to each unit and use that same  percentage as long as you own the property] You have to be consist on current and future tax returns.

You cannot deduct any loss of rental income for the period the property is vacant. 

Idle Property

Continue to claim a deduction for depreciation on property used in your rental activity even if it is temporarily idle (not in use). For example, if you must make repairs after a tenant moves out, you still depreciate the rental property during the time it is not available for rent. 

Publication 527(2016), Residential Rental Property

http://www.irs.gov/publications/p527/ch01.html#en_US_2016_publink1000219000

Good luck on being a landlord!