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Utilities for my rental are in my name. The renter sent me payments in addition to the rent. Does I include the money sent to pay utilities as rental income?

And then do I enter the utility bills as expenses?  The rental property was vacant in-between renters--are those utility bills deductible expenses?
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RichardG
New Member

Utilities for my rental are in my name. The renter sent me payments in addition to the rent. Does I include the money sent to pay utilities as rental income?

Go ahead and report the full amount your tenant is sending you.  You'll need to deduct the utility bills so the added payment from your tenant doesn't falsely inflate your income.  You can also deduct the utilities during those periods the property is not rented out.  

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3 Replies
RichardG
New Member

Utilities for my rental are in my name. The renter sent me payments in addition to the rent. Does I include the money sent to pay utilities as rental income?

Go ahead and report the full amount your tenant is sending you.  You'll need to deduct the utility bills so the added payment from your tenant doesn't falsely inflate your income.  You can also deduct the utilities during those periods the property is not rented out.  

Utilities for my rental are in my name. The renter sent me payments in addition to the rent. Does I include the money sent to pay utilities as rental income?

Does this still apply for 2021 Income tax?  I also have rentals and the utilities are in my name and my renters reimburse me for the power usage, etc.  I add the total for utilities to the actual rental income and declare it as "income" but then I expense the utilities out on my expense sheet.  Would that be correct?

AnnetteB6
Employee Tax Expert

Utilities for my rental are in my name. The renter sent me payments in addition to the rent. Does I include the money sent to pay utilities as rental income?

Yes, that would be the correct way to enter the utility reimbursements and your utility expenses.

 

@CaddyGrn

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