Naomi and Matt received the following amounts from a tenant who is renting their condominium during the current year rent is $1,500 per month): 2 months rent $ 2,200
Deposit 1,600
Rent for two months would normally have been $3,000,but the tenant paid $800 for a plumbing repair.The repair would normally have been paid by Naomi and Matt but the problem occurred while they were out of town.How much should Naomi and Matt report as rental income for the current tax year?

Question

Quizplus · Accepted Answer

The rental income for the current year is the total amount received from the tenant during the year, which includes:
- 2 months rent = $1,500/month x 2 = $3,000
- deposit = $1,600

The plumbing repair paid by the tenant does not affect the rental income, as it is an expense that would have been paid by Naomi and Matt if they were in town. Therefore, the total rental income for the current tax year is $3,000 + $1,600 = $4,600. Therefore, option (C) is correct.

Naomi and Matt Received the Following Amounts from a Tenant