Rental Late Fees and taxes - Posted by chill

Real Estate Investing Real Estate Financing
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Posted by JPiper on January 17, 2001 at 17:42:20:

Late fees are a subcategory of my rental income. Of course, I don’t call them “late fees”. I call them additional rent.

JPiper

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Rental Late Fees and taxes - Posted by chill

Posted by chill on January 17, 2001 at 16:57:23:

Is it fair to lump late fees into rental income for income tax purposes? This is in an LLC (filing as a partnership) which has only passive income. If we call the late fees (several hundred dollars) rental income, then expenses are taken against it. If we call them portfolio income, then the rental expenses don’t come off, and they don’t seem like portfolio income. What kind of income do you call Late Fees?

Thanks.