ATOT tax advice

[Craig234]

I rented a place to someone who has not paid for a very long time.

Besides no apparent options for collecting, I'm thinking of what else I should do but in particular am wondering about how to answer TurboTax asking if I support anyone. This would seem to qualify.

Should I put them as a dependent for this reason? Pros/Cons? Any other thoughts? Does it need their consent?

Edit: wait, nevermind. Turbotax misled me - they have to have lived with you.

 

[s0me0nesmind1]

On a scale from 1-10, how retarded are you? 11?

 

[BoomerD]

You can't claim them as a dependent, but you SHOULD be able to write off the debt for unpaid rent.

 

[local]

This is kinda like asking if you can claim your employees because they depend on you giving them their checks.

 

[Craig234]

You can't claim them as a dependent, but you SHOULD be able to write off the debt for unpaid rent.

I don't think so - it's simply not income, not a deduction.

The expenses (property tax) are deductible.

 

[Craig234]

This is kinda like asking if you can claim your employees because they depend on you giving them their checks.

No, actually, it's not.

And you DO claim the money you give your employees as a tax deduction.

 

[local]

No, actually, it's not.

And you DO claim the money you give your employees as a tax deduction.

Yes but the employees are not dependents. Just like you can claim the loss but not claim them as your dependents.

 

[Craig234]

Yes but the employees are not dependents. Just like you can claim the loss but not claim them as your dependents.

It's not a 'loss'. The rules say if over half their needs are provided - and rent is that - and their income is very low, they'd qualify as a dependent - except for the 'have to live with you'.

 

[BoomerD]

I don't think so - it's simply not income, not a deduction.

The expenses (property tax) are deductible.

Crap...that's right...sorry, it's been a few years since I did taxes.