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March 29, 2021
Question

For rental income it says "Security deposits that you kept." Does that mean security deposits that I am holding at this time for when someone is to move out?

  • March 29, 2021
  • 2 replies
  • 0 views
I would think that if I am merely holding the security deposit that this would not count as income because I have not earned it.  I am merely entitled to hold it and then keep it only if they trash the room.  So I would think it should not be rental income.

2 replies

March 30, 2021

I would think that if I am merely holding the security deposit that this would not count as income because I have not earned it. I am merely entitled to hold it and then keep it only if they trash the room. So I would think it should not be rental income.    

 

You are correct and that's what it's asking SD's you kept because they trashed the room or skipped out on rent they owe. 

Carl11_2
Employee
March 30, 2021

That does not include security deposits you are currently holding in escrow for active tenants.

If you had a tenant move out in 2020 and you kept their security deposit or any portion of it, then it's taxable income to you. That would be the amount you would enter there.