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diane2861
New Member

Can I divide the full amount I have received for a 3 year lease by 1/3 per year for the years to which it applies?

 
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MinhT
Expert Alumni

Can I divide the full amount I have received for a 3 year lease by 1/3 per year for the years to which it applies?

No. You have to report as rental income the full amount you received, even if the amount covers the 3 years.

Please see this IRS document, in particular the paragraph on Advance rent:

https://www.irs.gov/taxtopics/tc414


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MinhT
Expert Alumni

Can I divide the full amount I have received for a 3 year lease by 1/3 per year for the years to which it applies?

No. You have to report as rental income the full amount you received, even if the amount covers the 3 years.

Please see this IRS document, in particular the paragraph on Advance rent:

https://www.irs.gov/taxtopics/tc414


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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