For a cash-basis taxpayer,security deposits received on rental property are taxable to the landlord upon receipt.

Name: For a cash-basis taxpayer,security deposits received on rental property are taxable to the landlord upon receipt.
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Quizplus · Accepted Answer

Security deposits are not taxable upon receipt if they are refundable and intended to be returned to the tenant at the end of the lease. They are only taxable if they are non-refundable or applied as rent.

For a Cash-Basis Taxpayer,security Deposits Received on Rental Property Are