Eddie and Camilla received $11,600 for the rental of their rental house in Irvine,California.Eddie and Camilla do not use this property for personal use.The rent covers six months from October 1 of the current year to March 31 of next year.The amount also includes a security deposit of $2,000.How much should Eddie and Camilla report as rental income in the current tax year?

Question

Quizplus · Accepted Answer

The security deposit is not considered rental income because it is intended to be returned to the tenant at the end of the lease term. Therefore, Eddie and Camilla should only report the rental income of $9,600 for the six-month period.

Eddie and Camilla Received $11,600 for the Rental of Their