Checklist of What Rules and Information the IRS Will Be Verifying

Reportable Income - Rental Income

You have reported on your tax return:

____ All rental income.

____ Advance rent in the year received, regardless of the period covered or the accounting method used.

____ Payment received for the cancellation of a lease in the year received.

____ Security deposits that were not refundable because they were to be used as a final payment of rent constitute rent paid in advance and are income in the year of receipt.

____ Forfeited security deposits in the year they are forfeited.

____ Improvements to property made by a lessee in lieu of rent are treated as rent in the year they are made.

____ As rent in the year the lease is terminated, the value of buildings constructed or improvements made by a lessee when these improvements represent a full or partial liquidation of a lease rental.

____ Your expenses limited to your rental income if a home or other dwelling unit was used by you, your relatives, or your friends for more than the larger of 14 days or 10 percent of the number of days the unit was rented at fair rental.

Next Section: Unearned Income

Audit Proofing Main | Home

© 1986, 1998 to 2002, Jack Warren Wade, Jr.