Advance rent
Varies
Can You Write Off Advance Rent?
Short answer: Yes, it's taxable when received: rent paid ahead, such as January rent collected in December, is income in the year you get it.
Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
Advance rent
Varies
Real Estate / Landlords / Property Managers / Agents
Yes, it's taxable when received: rent paid ahead, such as January rent collected in December, is income in the year you get it.
Business justification
Yes, it's taxable when received: rent paid ahead, such as January rent collected in December, is income in the year you get it. Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Category
- Rental Property Write-Offs