As a result of the health crisis, the tenant has liquidity problems, so the tenant will only pay part of the rent for a few months. If there is an agreement with this temporary reduction and you are not going to claim the outstanding amounts from your tenant, a written agreement must be made.
In this way you will be able to deduct from the income, the reduction in the amount that you have to declare in the Corporate Tax or IRPF. Otherwise, the amount deducted will be considered a non-payment expense and not a reduction in income, which can cause problems.
- If at year-end, no more than six months have elapsed since the due date, you will not be able to deduct these expenses.
- Regardless of the due date, if you have not claimed the collection, the IRS could interpret that you have incurred a release and deny you the deduction of the expense.