My tenant includes the amount of utilities in each check. Do I count the total of each check as rental income and not claim utility expenses?

[TinkerBell01]

Or do I need to separate the actual rental payment and use that portion asrental income and then add up the amount of utilities and deduct them separately?

[Zbucklyo · Accepted solution]

Include the full payment as rental income, then deduct what you pay out-of-pocket for utilities.