Click here to read or watch more IRS Help resources.<\/a><\/p>\n1. Rental income is any payment you receive as a result of the use or occupation of a property that you own. \u00a0Rental income must be included in your gross income and reported in the year you receive it.
\n2. Security deposits are not counted as income because you would return it to your tenant at the end of the lease. \u00a0But if you forfeit all or part of the security deposit because your tenant did not fulfill his or her obligations under the lease, then you have to include this into your income in the year you receive it.
\n3. If you receive advanced rental (rental that pays for a period ahead of time), then you must declare this as part of your income in the year it is received regardless of the period the rental covers.
\n4. If you receive property or services in lieu of money for rent, you should calculate the fair market value of such property or service and include this amount with your income. \u00a0If the value of property or services has been agreed upon, then this value is the fair market value to include with your income unless the agreed upon income is clearly inaccurate.
\n5. If your tenant pays any expenses, such expenses are deemed as income to you and you must declare them as such. \u00a0However, you can deduct them as expenses if they fall under the category of deductible rental expenses. \u00a0Publication 527 Rental Expenses cover this aspect in greater detail.
\n6. Deductible rental expenses are defined as expenses incurred as a result of renting out your property. \u00a0These include taxes, insurance, maintenance, interests, outgoings and the like. \u00a0These expenses can be deducted from your gross rental income and you generally do so in the year you pay for these expenses.
\n7. If you make use of your own property that you rent out, say as a holiday home, you must divide your expenses between rental expenses and personal expenses. \u00a0If your expenses for rental use are higher than your rental income, you may not be able to deduct all of the rental expenses.<\/p>\n
If you need more information on rental income and expenses, refer to Publication 527 which you can download from the IRS website, www.irs.gov or call 800-TAX-FORM.<\/p>\n","protected":false},"excerpt":{"rendered":"
IRS problems aren't as complicated as they look once you see the structure. I'm attorney Darrin Mish. I've represented taxpayers before the IRS for three decades \u2014 in Florida, Colorado, Texas, and internationally. Here's the plain-English breakdown. If you own property and collect rental income from them, this is something the IRS wants you to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4],"tags":[],"class_list":["post-16581","post","type-post","status-publish","format-standard","hentry","category-irs-help"],"_links":{"self":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/16581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/comments?post=16581"}],"version-history":[{"count":1,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/16581\/revisions"}],"predecessor-version":[{"id":21967,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/16581\/revisions\/21967"}],"wp:attachment":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/media?parent=16581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/categories?post=16581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/tags?post=16581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}