How should the payments be characterized eg on lease


Question - Rachel owns rental properties. When Rachel rents to a new tenant, she usually requires the tenant to pay an amount in addition to the first month's rent. The additional amount serves as security for damages to the property and the tenant's failure to pay future rents. How should the payments be characterized (e.g., on lease documents) to minimize Rachel's current tax liability?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: How should the payments be characterized eg on lease
Reference No:- TGS02617433

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)