PatriciaR
New Member

Deductions & credits

They would be considered rent in the year you collected it, if you intend to keep the deposit

If you are holding the deposit until they move out (and intend to return less damages), it is not included in income for the year. Instead, any amounts you kept for repairs or damages would be included in the year that you refunded the difference.

https://www.irs.gov/publications/p527/ch01.html

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