Security deposits
Varies
Can You Write Off Security Deposits?
Short answer: Deposits you'll return aren't income; deposits you keep for damage or unpaid rent become income in that year.
A 'last month's rent' deposit is income when received.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
BW-B23-00629
medium risk
Security deposits
Varies
Real Estate / Landlords / Property Managers / Agents
Rent & Facilities
Rental Property Write-Offs
Deposits you'll return aren't income; deposits you keep for damage or unpaid rent become income in that year.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Deposits you'll return aren't income; deposits you keep for damage or unpaid rent become income in that year. A 'last month's rent' deposit is income when received.
Category
- Rental Property Write-Offs
rental property
search demand 2026 b23
rental costs
operations