This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
My tenant has filed for bankrupcy and informed he cannot pay rent . I may lose few months rent. If I agree to break lease and minimize my losses and take up with IRS & CRA with a copy of bankrupcy certificate and tenant confirmation letter of non payment of rent , will I still have to pay tax on lost income?
You are taxed on actual income, not potential. No rent, no income, no tax.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best