Rental income on property.

Forum|Forum|3 years ago
March 28, 2023
1 reply
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Hello

We rented our property end of 2022. Although the renters moved in in Dec 2022., we did not receive rental income until Jan 2023. The first month's rent was paid as real estate agent fees. Question is during the tax filing, can I enter rental income as 0 for the year 2022 and claim the first months rents as legal /royalty fees paid?

MinhT1

You are reporting on a cash method.

If you started renting in December 2022, then you can start deducting rental expenses from December 2022. The December rent paid in January 2023 will be reported in tax year 2023. In 2022, you will report 0 rental income.

Please read this TurboTax Help article on the rental expenses you can deduct.

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