How to categorize debt payment from former tenant?

Investor Q&A Expense Categories
1

Hello All,

I had a tenant who left my property in a shambles and they accrued about 4K of debt with damages. My PM sent the account to collections.

The former resident has been paying me back the debt.

How do I categorize the payments in Stessa? It is not income according to my PM accountant.

Any help appreciated.

Thank you!

-Dana

2

@danaerp I suspect the answer may depend on how you treated the unpaid debt in the first place, but we do not provide tax advice so perhaps a CPA will weigh in here and point us in the right direction.

3

Thanks for the try, Devin. I’ll ask my tax person as well.

Best regards.

-Dana