If you’re renting a property to tenants who decide not pay rent for a few months before you’re able to move them out are rent none payments expensed?
Generaly, when you perform a service for a client you book the sale and if they eventually they don’t pay (after you have made reasonable attempts to collect & documented correspondence) there is a bad debt expense booked, which essentially nets the transaction out to zero:
BAD DEBT EXP XXX
NET EFFECT ON INCOME STATEMENT IS ZERO
Does the same logic apply to rental income as it pertains to the T776?