topic Schedule L in Business & farm

Schedule L

rhondajoy125 — Sat, 01 Feb 2025 01:17:39 GMT

This year we extended our lease with our tenant and they paid an additional amount to the Security Deposit. We are not going to include it in our income, just like the original Security Deposit, it is a Current Liability.

The updated amount is now listed on Line 20 in Schedule L since I added that to the worksheet. I also needed to update the amount in Row A of the Partners’ Liabilities Smart Worksheet box and put a 0 in Line D (recourse).

I included a statement on Line 20; to address these changes. Is there anything else I need to do?

Re: Schedule L

PatriciaV — Sun, 02 Feb 2025 16:09:10 GMT

No. As long as the Other Liability is documented for the partners, you have nothing else to add.

Re: Schedule L

rhondajoy125 — Sun, 02 Feb 2025 17:35:33 GMT

Thank you

Re: 1099-MISC

rhondajoy125 — Mon, 03 Feb 2025 00:55:04 GMT

Our Tenant (commercial) sent us a 1099-MISC form. We recently extended their lease for 5 years and they paid an additional amount to add to the security deposit. We carry the security deposit on our books as a liability. They included the additional security deposit on the 1099-MISC. Do I need them to update that or is it okay that our income won’t match what they put on the 1099-MISC.

Thanks for your time and attention.

Re: 1099-MISC

PatriciaV — Tue, 04 Feb 2025 15:53:10 GMT

Please clarify: Are you cash or accrual basis of accounting?

Re: 1099-MISC

rhondajoy125 — Tue, 04 Feb 2025 15:57:08 GMT

Cash

Re: 1099-MISC

ThomasM125 — Tue, 04 Feb 2025 23:11:20 GMT

You can enter the Form 1099-MISC as rent income and then add an expense called "Security Deposits" or something similar to cancel out the income.