When is rent considered income? - Posted by Gary


#1

Posted by J. Hyre in Ohio on November 04, 1998 at 07:37:39:

Assuming you are operating in your individual capacity (i.e.- not an LLC or corporation), you are probably a cash basis taxpayer. As such, income is recognized when you have unhindered control over the money. You usually have such control upon receipt of the money. NOTE: The IRS gets really mad if you delay receipt from say Dec 30 to Jan 2 so that the income falls in the next tax year. The “receipt” rule applies to when you COULD HAVE received the money in the case of such “artificial” delays.


#2

When is rent considered income? - Posted by Gary

Posted by Gary on November 04, 1998 at 04:57:40:

For taxation purposes, when is rent paid by mail by check considered received as taxable income…

When the check is written?
When the check is mailed (postmarked)?
When the check is received?
When check is deposited?

Thanks in advance to all responders.