November 22, 2016

Taxable Rental Income

If you have a rental property or rent rooms in your residence, there are a few things you should know. Here’s how to navigate taxable rental income: Rental property income includes all advance and current rental payments, as well as penalty fees, e.g., fees charged for late payments. Should a tenant cancel their lease, the money forfeited from security deposits is still rental income. You should also report any property or services you receive in lieu of rent at their fair market value. For more information about rental income, speak to a tax professional or read IRS Topic 414 – Rental Income and Expenses. Tip courtesy of IRS.gov