Our LLC paid an annual premium for property insurance in October 2021 on a commercial building. The tenant reimbursed the LLC on a quarterly basis starting in November 2021. We did not show the property insurance premium as an expense in 2021 and did not include the reimbursement in November as income. In 2022 the LLC sold the building so there will be no annual premium due in 2022. The tenant paid reimbursements in Nov 2021, Feb 2022, May 2022 and August 2022.
Are the reimbursements paid in 2022 considered income? Since we never claimed the reimbursements as income in the past and never claimed the insurance premium as an expense in the past, I believe that these reimbursements should not be considered income for 2022. Help?
