Question
Prorated rent collected at closing for primary home
Hello,
I purchased my primary home in Jun 2023. The previous home owner used the property as a rental, and we waited the tenants to move out, 23 days from closing. The prorated rent for 23 days are provided as seller credit in closing. Do I report this credit as a rental income? Or is it considered as a reduction in cost basis for the property? I am confused because it seems like I need to report rental income for stays longer than 15 days.
06/07 - Closing date
06/07 ~ 07/01 - Rented out
07/01 - Moved in
Thank you!
