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Updated over 2 years ago on . Most recent reply
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Using a 1099 to evicted tenants
I have been toying with the idea come early 2021 that for any tenant that has taken advantage of the Covid situation and NOT paid rent ( 12 months of rent over $11k in unpaid rent) even with both of them working and we just got to court last week as we filed eviction in early Feb ( pre covid) 2020 the judge this week issued the warrant of eviction as they admitted in court they are employed but just did not want to pay rent...... I know I can write off the loss on taxes but the probability of collect any rent even with a judgment is very low. Just as a way to make their life more difficult I have heard issuing a 1099 to them as they indirectly got value of living in apartment for 1 year. Just like in the credit card world where you settle a debt for less than what was owed you typically would get a 1099 issued for the amt you did not have to pay. It becomes income on their tax return. I received zero dollars they got $10k+ of value. I have the SS number(s) from the application. Just looking for feedback of anyone that has or is doing this idea. Thanks Rob M Note I am in NY State a "tenant friendly state"
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This is a very creative idea. However, aside from getting the satisfaction of "putting the screws" to your tenants, what benefit do you get? I am not sure what the law is in NY, but when I was a landlord n NJ, I would take my tenants to small claims court and get a judgement for the unpaid rent. The judgement was good for 10 years I believe with the opportunity to renew it. Some of them got paid off via wage garnishments and I did get lazy and let a few expire. However, a buddy of mine got a random call one day from an attorney who was representing one of his former tenants. She was looking to buy a house 9 years after he evicted her and got a judgement for the back rent. When the title company did an upper court search, they found the judgement and she had to pay him before she could proceed with the purchase of her new home. You never know...