topic Short term rental prepaid for stay in following year when do you pickup rent? in Business & farm

Short term rental prepaid for stay in following year when do you pickup rent?

cbusa — Thu, 14 Sep 2023 03:26:20 GMT

If a short term guests prepays rent for a short term rental/ stay the following year when do pickup rent? Is the payment considered a deposit or rent received? Can you point me to any IRS guidance on this?

Re: Short term rental prepaid for stay in following year when do you pickup rent?

Bsch4477 — Thu, 14 Sep 2023 03:34:59 GMT

If the deposit goes toward the eventual rent payment it is taxed as income in the year it is received.
https://www.irs.gov/businesses/small-businesses-self-employed/rental-income-and-expenses-real-estate-tax-tips#:~:text=If%20an%20amount%20called%20a,income%20when%20you%20receive%20it.