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Tax Year Prior to 2020: I have a rental property as of December 2019. But did not receive my first check from the rental company until January. Should this be counted as 2019 or 2020 taxes?

 
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1 Reply
WKins2
Expert Alumni

Tax Year Prior to 2020: I have a rental property as of December 2019. But did not receive my first check from the rental company until January. Should this be counted as 2019 or 2020 taxes?

Assuming you file your return as a cash basis (most people do) you would recognize the income when you received it (in Jan) so it would need to be reported on your 2020 return when you file.

 

You can read more about cash basis accounting by clicking here: https://ttlc.intuit.com/community/business/help/what-is-the-cash-method-of-accounting/00/25658

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