Hoyt rented office space two years ago to Harris,receiving the first and last months' rent plus a security deposit of $1,000.In early January of this year,Harris moves and Hoyt refunds $250 of the deposit and keeps the remainder to cover $500 which is spent for repairs to the office space and one week of unpaid rent that amounts to $250.How would this information be reflected on Hoyt's tax return this year?

Question

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Hoyt received $750 from the security deposit that was not refunded, which is considered income. The $500 spent on repairs is deductible as an expense.

Hoyt Rented Office Space Two Years Ago to Harris,receiving the First