Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I bought a house in 1997, and May 2002 I bought another house, and moved into the new house. The 1st house is going to be occupied by my parents when they retire and move down June 2003. I had some renters in the 1st house, to occupy from June 2002 - June 2003, but they didn't work out, and moved out Jan 2003. They owe me 2 months rent which I doubt I will ever collect. The rent they were paying was equal to my mortgage payment.

Question: How should I handle these renters for tax year 2002? They were in 6.5 months of the year, and I lost money on the deal. Can I just pretend like they were never there, or do I need to setup a Schedule C for my "rental business". If I did ignore them, would I be losing possible "business loss" type deductions?

Also, once my folks move in June 2003, how should I handle it then?


Steve in NC, USA
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.