If a short term guests prepays rent for a short term rental/ stay the following year when do pickup rent? Is the payment considered a deposit or rent received? Can you point me to any IRS guidance on this?
If the deposit goes toward the eventual rent payment it is taxed as income in the year it is received.
https://www.irs.gov/businesses/small-businesses-self-employed/rental-income-and-expenses-real-estate-tax-tips#:~:text=If%20an%20amount%20called%20a,income%20when%20you%20receive%20it.
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