QUESTION:
Mike,
…first, thanks for the article on how to handle tenants who include you in their bankruptcy…
We manage and operate a commercial mixed use property with about 50 tenants.  Cash accounting is the method used.   When a tenant vacates prior to the expiration of the lease owing rent and costs for tenant damages, can we write off the loss for tax accounting purposes?
Thanks,
Simone
ANSWER:
Great question Simone and you get a simple answer.
If you really are using true “Cash Method” of accounting, (reporting income as you get it, not as it is owed to you)
you have no losses to write off.
Are you using the Investor Books Pro System with Tenant Tracking? This solves it all for you.
– the question you asked involves the “Accrual Method” of accounting where you report what is owed you as income, (simple version)
Mike Butler