For rental property, is the security deposit income?

geknopp — Thu, 06 Jun 2019 09:41:03 GMT

Do not include a security deposit in your income when you...

TomK — Thu, 06 Jun 2019 09:41:04 GMT

Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.

If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. Include it in your income when you receive it.

For more information - Pub. 527 - Residential Rental Property: https://www.irs.gov/pub/irs-pdf/p527.pdf

topic For rental property, is the security deposit income? in Investors & landlords

For rental property, is the security deposit income?

Do not include a security deposit in your income when you...