Re: Converting judgement against tenant to IRS - Landlord Forum thread 345171

Re: Converting judgement against tenant to IRS by P-Bone (NY and OH) on May 24, 2016 @11:00

I am confused. If the tenant failed to pay you, you wouldn't have any income in relation to that debt, therefore, not claiming the revenue is your way of not paying tax on it. You can't then again take another deduction because you decide not to pursue a revenue amount you never had to begin with.

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Re: Converting judgement against tenant to IRS by Greg on May 25, 2016 @17:34	[ Reply ]

If you file a form 1099-C, Cancellation of Debt then the debt is cancelled. However, the IRS then deems the debt to be income and will tax the tenant accordingly. Greg in Phoenix