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Level 4
posted Feb 6, 2021 12:13:16 PM

Loss of Rent due to Casualty

In 2020, Hurricane Sally destroyed 3 mobile homes, tenant owned, in our Mobile Home Park.  Two homes, unlivable, still reside in my park, however tenants are unable to pay rent on those lots.  Can I take these "Lost Rent" payments as a Casualty loss on my tax return?  I don't have any insurance to cover loss of income.

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1 Best answer
Expert Alumni
Feb 7, 2021 10:26:11 AM

Page 4 of the following publication says that you don't deduct uncollected rent.

 

IRS Pub 527

2 Replies
Level 15
Feb 6, 2021 4:09:07 PM

You haven't "lost" anything.  You just never received the income.

 

So you just don't report the income that you never received.   Therefore, it won't be taxable.

Expert Alumni
Feb 7, 2021 10:26:11 AM

Page 4 of the following publication says that you don't deduct uncollected rent.

 

IRS Pub 527