Loss of Rent due to Casualty

Stupidasur3 · ‎February 6, 2021

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.

PattiF · ‎February 7, 2021

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

IRS Pub 527

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AmeliesUncle · ‎February 6, 2021

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.

PattiF · ‎February 7, 2021

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

IRS Pub 527

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Loss of Rent due to Casualty