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Author: steved0x One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Question about renters in a 2nd house Date: 2/6/2003 11:38 PM
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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?

Thanks

Steve in NC, USA
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