In December 2018, Mary collected the December 2018 and January 2019 rent from a tenant.Mary is a cash basis taxpayer.The amount collected in December 2018 for the 2019 rent should be included in her 2019 gross income.

Question

Quizplus · Accepted Answer

Since Mary is a cash basis taxpayer, she should only include income in the year that it is received. Therefore, the amount collected in December 2018 for January 2019 rent should be included in her 2018 gross income, not 2019.

In December 2018, Mary Collected the December 2018 and January