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Prorated rent collected at closing for primary home

Hello,

 

I purchased my primary home in Jun 2023. The previous home owner used the property as a rental, and we waited the tenants to move out, 23 days from closing. The prorated rent for 23 days are provided as seller credit in closing. Do I report this credit as a rental income? Or is it considered as a reduction in cost basis for the property? I am confused because it seems like I need to report rental income for stays longer than 15 days.

 

06/07 - Closing date

06/07 ~ 07/01 - Rented out

07/01 - Moved in

 

Thank you!

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1 Reply
PaulaM
Expert Alumni

Prorated rent collected at closing for primary home

I would note it as a reduction in purchase price and leave it at that. Document for your records.

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