Tax deduction for rental income loss

[Joyce Orange]

Hi there, need your help about tax deduction or tax benefit for rental income loss for high earn person.

I have a friend whose earn is over $150k yearly with a rental condo. Due to Covid 19, she lost a few month rental income as it it is not easy to get tenants. Here are two questions:

1. How would this rental lose affect her tax when she fill her tax return for 2020?

2. According to her financial situation, is it more beneficial or her, from tax point of view, to have the unit vacant rather than renting to a irresponsible tenant?

Thank you very much for your advise !

[Kyle J.]

Originally posted by @Nicholas Moran:

 

I bought a a property last April but was vacant for the rest of the year 2019 to get it rent ready and other issues with property manager can I claim those expenses for it been vacant?

It's a little unclear (at least to me) the exact timeline and what may have happened during that long period of time.  However, the rule is, up until you actually "placed it in service" (meaning it was ready to rent), those costs associated with making the property ready for service will need to be capitalized.