Originally Posted by
kraftwerk
Lot's of empty store-fronts now in NYC Brooklyn, Queens etc. As I understand it the greed motivator is such that you can take a business write -off for 'the rent you're NOT getting' and it goes well for developers and such to keep store-fronts empty & rents high.
There's no deduction for rent one doesn't receive.
(Although there are accounting complexities when using the accrual system.)
So there's no financial or tax advantage to leaving a unit vacant.
The way this works...
If I collect $xxx/month for an occupied unit, then I declare this income on my tax return.
If the unit becomes vacant, that $xxx/month simply isn't recorded as income, so I don't pay taxes on it.
The taxpayer doesn't give me anything.
It's easy to discover that occupied units are more profitable than vacant ones.
Pretty simple, eh?
Background:
I've been a licensed real estate broker, developer, & commercial & residential landlord.
I've worked closely with my CPA on tax strategies & compliance, & done well in IRS audits.
Now, for everyone's entertainment....