All advance rental payments received,including security deposits for a rental property,must be reported as income when received.

Question

Quizplus · Accepted Answer

Advance rental payments are reported as income in the year received. However, security deposits are not reported as income if they are intended to be returned to the tenant at the end of the lease. They only become income if they are kept due to the tenant not meeting the terms of the lease.

All Advance Rental Payments Received,including Security Deposits for a Rental