NAVARRA: Haven't they paid you the rent?

In Income, as a general rule, the income and expenses that determine the tax base are attributed to the period in which they have been accrued and produced, regardless of when the collections and payments are made. Therefore, if your tenant hasn't paid you the rent, you will have to reflect it in the tax base and thus pay taxes on the accrued and unpaid rents. However, please keep the following in mind:

Unpaid rents older than 6 months

You can deduct as an expense (doubtful collection balance), the part of the rents not received that as of December 31 have an age of more than 6 months and for which you have not agreed to a renewal of credit with your tenant.

Suspension of payments, bankruptcy, or insolvency of the tenant.

Be aware that you will not have to wait the 6 months if your tenant is in suspension of payments, bankruptcy, or another analogous situation, or in insolvency, since, in that case, the unpaid rents are deductible from the moment of non-payment.

Our professionals will assist you in preparing your tax return and calculating your income.