Bad debt? - Landlord Forum thread

Bad debt? by Anonymous on July 22, 2012 @17:17

For the past 4 years, we've been renting an apartment to my brother in law. He recently lost his job and will be moving in with a family member next month. We're helping him pack, he has transportation arranged with said family member, so we know for sure he's going.

The place is in pretty good shape after 4 years of his living in it, no major repairs or issues, but the SD he gave us 4 years ago doesn't hardly touch the rent owed.

He has not paid us rent for the past 3 months, but because he's "family" we haven't filed any kind of eviction paperwork.

Can we take the money owed us as a "bad debt" on our taxes? or do we have to file for eviction judgement ? or ???? This is in Cali.

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Re: Bad debt? by Jake on July 22, 2012 @18:20	[ Reply ]

If your brother in-law was good family he would have paid or moved out. This family member made a sucker out of you. He recently lost his job but has not paid for 3 months. No he is moving on to leach of another family member. To paraphrase a song, "he ain't my brother, he is just heavy."

Anyone able to answer the original ques?

Re: Anyone able to answer the original ques?

Re: Bad debt? by outabout (Co) on July 22, 2012 @19:03	[ Reply ]

I would think this would be a business loss rather than a bad debt. You provided the service (the rental), but didn't get paid for.

Re: Bad debt?

Re: Bad debt? by Anonymous on July 22, 2012 @22:34	[ Reply ]

Are you on good terms with the brother in law or is he screwing you over. If you try this he will get a 1099 and have to pay taxes for the "forgiven debt".