This is an interesting tax question and one that small business owners often ask when they have commercial space available for lease to another party. Unfortunately, you can not claim income tax potentially lost rental income or what is best characterized as opportunity. Similarly, the IRS states in the Internal Revenue Code as lost rental income while the property is vacant is not tax deductible. Rather, it is the opportunity cost in economic terms but that’s about it. You can not reduce the opportunity cost of tax as small as much as it benefits may reduce your tax liability.
Commonly used Business Tax Deduction
If you are wondering what you can draw following are some common tax deductible business expenses, real estate taxes, insurance premiums qualified mortgage insurance, deductible mortgage interest, casualty losses, utilities, insurance, depreciation, security and repair.
registration Invoices & Receipts
Also keep in mind that it is very important to maintain documents, such as invoices & receipts for all expenses you claim on your tax return. The Documentation should be stored in a safe and accessible place. Even if the general ledgers are not in order now, you will at least want to have access to supporting documentation to fix a mistake that will be known. It is not entirely uncommon for the IRS to request documents related to the large income tax reported on your tax return. Start looking for all the receipts now before you have to scramble.