Question

Question 6 of 30. Carolyn owns a rental house. Her current tenant, Corey, signed a two-year lease and moved into the house in January 2018. At that time, Corey paid Carolyn $1,500 for the first month's rent, $1,500 for the last month's rent, and $1,500 as a security deposit. Corey paid the rent in cash on the first of each month during the year, except in November when he replaced the water heater in exchange for his rent. The water heater would have cost Carolyn $1,300 to purchase and install. How much rental income must Carolyn report for the tax year? O $17,800 O $19,300 O $19,500 O $20,800

Answer 1

Answer- $19300, as per law rental income includes

Advanced payments of rent that you receive.

Expenses paid by your tenants if they're not obligated to pay them.

Hence carolyn total rental income =1500*11(except november nonth)+$1300(water heater in place of rent)+(1500) last month rent = $19300