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| JBSK CPAs LLP |
| CPAs and=20 Consultants |
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If you own investment rental property individually, you might get = money from=20 tenants other than for rent. Is it all rental income? The IRS defines = rental=20 income as any payment you receive for the use or occupation of property = you=20 own.
Advance rent payments are included as rental income = in the=20 year they are received.
Security deposits are not included in = rental income=20 if you intend to return the money to the tenants when their leases = expire.=20 Amounts you keep to cover any lease breaches, however, are considered = rental=20 income in the year the funds are kept.
Expenses paid by your tenant on your behalf = (emergency=20 repair expenses, for example) are considered rental income. If the = expense is a=20 deductible rental expense, then you can take the tax deduction.