Property manager receives prepaid rent - January rent received in December. These funds were deposited on their books when received in December but as the landlord I didn't actually receive the funds into my bank account until the due date of January. Since I didn't actually receive the funds until January would it be recorded as income in December or January?
USA 1099 and prepaid rent
- Thread starter Kelly
- Start date
If you are an accrual basis taxpayer, then you can record the Jan rent to the December balance sheet and not as income
If you are a cash basis taxpayer, then since the Jan rent was delivered to your agent (property manager) in December therefore "you received it" in December and it is income for December.
If you are a cash basis taxpayer, then since the Jan rent was delivered to your agent (property manager) in December therefore "you received it" in December and it is income for December.