Amy6
New Member

Can I claim rental property security deposit as expense if it was reported as income previously?

My accountant claimed security deposit as rental income in 2016 which I don't think he should have from what I can tell as it was meant to be returned when the lease ends. In 2018, when the tenant moved out, I used a portion of the deposit for repairs and returned the remaining amount. Can I claim the whole deposit as expense in 2018 since I didn't benefit from it at all.