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posted Jan 3, 2025 12:36:14 PM

I hired a guy to replace a rotting deck to a rental unit above my home. He didn't, and I sued him in small claims. He refused to pay. Do I write his invoice off?

I am wondering if I can write off the original cost of the repair, given that I have not received reimbursement for the money I spent.

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2 Replies
Level 15
Jan 3, 2025 1:24:40 PM

Since you were not reimbursed you can deduct what you paid as an expense. 

Level 15
Jan 3, 2025 2:00:43 PM

What you paid for the repair is a valid rental expense, weather the repair was actually done or not. Additionally, any legal expenses you incurred in this matter are also deductible as a rental expense. If I recall, there's a line item on SCH E for Legal and Professional Fees where you can claim your costs associated with small claims.