|
Posted by Mike Wellman on April 9, 2007, 3:10 am
Please log in for more thread options
> My daughter began renting her house in November of 2006. In
> addition to two months of rent, she received a deposit equal
> to a month's rent.
>
> How is this deposit handled?
>
> Is a Schedule C the best way to handle the rent income?
Do not include a security deposit in your income when you
receive it if you plan to return it to your tenant at the
end of the lease. But if you keep part or all of the
security deposit during any year because your tenant does
not live up to the terms of the lease, include the amount
you keep in your income in that year.
If an amount called a security deposit is to be used as a
final payment of rent, it is advance rent. Include it in
your income when you receive it.
Report rental income and expense on Schedule E.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap