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I'm preparing my return for 2018 and have a rental property. The renter vacated the property in February and was subsequently rented again. The security deposit was returned to the original renter. When I entered the income from the property into Turbo Tax, the program prompted me to include the security deposit for the new renter into the income for the property for 2018. How do I record the security deposit that was returned to the original renter into the program?
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If the deposit from the first renter was reported as income when you received it, you can deduct the reimbursement of that deposit as a rental expense in Miscellaneous Expenses and describe it as Reimbursement of renter's deposit.
If the deposit from the first renter was reported as income when you received it, you can deduct the reimbursement of that deposit as a rental expense in Miscellaneous Expenses and describe it as Reimbursement of renter's deposit.
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