An accrual basis taxpayer reports prepaid rent (e.g., payments received in advance for the use of property where the lessor provides no services) when it is earned.

Name: An accrual basis taxpayer reports prepaid rent (e.g., payments received in advance for the use of property where the lessor provides no services) when it is earned.
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An accrual basis taxpayer reports prepaid rent as income when it is received, not when it is earned, according to the IRS rules for advance payments.

An Accrual Basis Taxpayer Reports Prepaid Rent (E