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What does “Security deposits that you kept” mean?

On the “Enter Any Other Rental Income” section of “Business Income and Expenses” it states that I should include any “Security deposits that you kept” in my income… Does this mean that I should include the security deposit that was transferred to me from the property management company I fired mid-year for the tenants that were renting my property for the remaining 6 months of the year? They have not yet moved out and I do not know if I will use any of the security deposit for damages or return it all to them. It does not seem to me that I have “kept” or am “keeping” this money, but rather, that it is being held in reserve. Any clarification would be appreciated. I can’t be the first person to ask this question, and the wording is the program is so vague...

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2 Replies
ThomasM125
Expert Alumni

What does “Security deposits that you kept” mean?

Security deposits you kept would be the money from deposits that you will not be giving back to the tenants. The money you are holding pending the outcome of the rental would not represent security deposits you kept.

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What does “Security deposits that you kept” mean?

Thank you so much for that clarification

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