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> and apparently (for a reason I don't fully understand) landlords felt it better to have spaces remain vacant than to lower rents. As I understand it (but I'm
by klyrs 3y ago
> and apparently (for a reason I don't fully understand) landlords felt it better to have spaces remain vacant than to lower rents.
As I understand it (but I'm not sure how applicable this is to any specific place), landlords can write down a loss set by either the last rent they received or the market rate in the neighborhood. If those losses are offset by gains elsewhere, they can zero their tax bill -- which, for landlords with diversified holdings, may be very large.
- ryanwaggoner 3y agoThis isn’t true, you can’t deduct lost rent as an expense.
- klyrs 3y agoLike I said; I'm not sure about all jurisdictions but it's true where I live: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/rental-losses.html https://www.canada.ca/en/revenue-agency/services/tax/busines... New York: https://www.tax.ny.gov/pit/letters/rental-loss.htm https://www.tax.ny.gov/pit/letters/rental-loss.htm
- ryanwaggoner 3y agoNo, you can deduct actual expenses, or uncollectible rent. This does not include theoretical rents that you would have received had the property been rented. No part of your deductible expenses is contingent on the market rent, or the last rent you charged.
- HeyLaughingBoy 3y ago> does not include theoretical rents If only you could do that then I might still be a landlord :-)