Last tax year (2022), I had a tenant damage an item and she paid for it at its original cost . I had planned to replace it myself but never did. When she gave me the check, I didn't consider it was rent income so not knowing how to treat it, I deposited it in the company bank account under Repairs category. It was only debit in that list. Then my balance sheet was off by that same amount. Someone suggested I enter it as a current liability on the balance sheet so that got it to balance last year. But now I still haven't replaced the item and don't know if I will replace it anytime soon. But how do I get it off the balance sheet? It's too late to claim it on that 2022 return as income. And now I think I still have to keep it there at end of year balance sheet or I won't balance. I'm out of balance by a greater amount now and so am not sure how much I'm really off by because of this item. How do I get rid of it on balance sheet? Do I have to do it this year? Thanks for any advice! I wish now, I had claimed as income or just let it go.
Rae
it should have been reported as income in 2022. then any undepreciated balance should have been written off assuming it no longer functioned. so technically 2022 should be amended.
Thank you for responding.
So I amend, report it as income and correct balance sheet to take it off? Thing is that it's less than $50. It seems like a lot of trouble for that amount. Is that is only way? Could I pay for a repair in the same amount as item this tax year and be able to take it off that way some how ? I do the small handyman jobs so I would be paying myself to fix it.
I went ahead and opened my 2022 return in TT and the change was easy enough. All is well now. Learned a lesson here.
Thanks