In December 2015,Max,a cash basis taxpayer,rents an apartment to Kadeem.Max receives both the first and last months' rent totaling $1,800 plus a security deposit of $400.The amount of income reported as taxable in 2015 is

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Quizplus · Accepted Answer

Max received $1,800 in rent and a $400 security deposit. The security deposit is not taxable income. Therefore, Max's taxable income for 2015 is $1,800.

In December 2015,Max,a Cash Basis Taxpayer,rents an Apartment to Kadeem