How much income does the landlord report as taxable in the current year?
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In December 200x, Max, a cash basis taxpayer, rents an apartment to Charlie. Max receives both the first and last months' rent totaling $1,000 plus a security deposit of $400. What is the amount of income reported as taxable in 200x?
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Solution Summary
Cash basis accounting for a taxpayer is determined. The amount of income reported as taxable in 200x is determined.
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ANSWERS
Since Max is a cash basis taxpayer, he has to include in his income all rental payment he receives regardless if its advance ...
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