Rental loss

[MGC94]

Taxpayer has a family member in rental property and they did not pay rent all year, but taxpayer still paid all expenses. Would this still go on the sch E or at what point of not paying rent would this have to go on the schedule A? I think this is the 2nd year with no income from the rental (drug related situation for nonpayment)

Thank you 

[taxes96786]

Family living there, not renting. 
This is either a 2nd home or an investment property that is not producing income. No deductible expenses other than, possibly, property tax on Sch A of 1040.

Do you do any research? Do you have access to Pub 17 or 1040 instructions?

I know you took over a tax business with no experience but, it would be in your best interest to make use of IRS tutorials, etc

[itonewbie]

Is there a formal rental agreement?

Is the agreement on commercial terms?

Is the rent comparable to FMV?

Is the agreement legally enforceable?

Has your client been actively pursuing the tenant to enforce the agreement, in line with market practice, notwithstanding the family relationship?

As of the end of 2022, is your client still continuing the effort to pursue the tenant and exhaust all avenues for a commercial resolution?

These are some of the question I'd ask to determine whether this is a Sch E activity.

[MGC94]

They are suppose to be paying rent. The taxpayer lives in FL. This is a NJ rental property. In the past they have paid and reported income, but now (drugs) they are not paying. Taxpayer is still paying all the expenses 

[itonewbie]

Still the same questions to ask.

[qbteachmt]

"I think this is the 2nd year with no income from the rental"

How was it reported last year?