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?© BrainMass Inc. brainmass.com June 3, 2020, 11:23 pm ad1c9bdddf
Since Max is a cash basis taxpayer, he has to include in his income all rental payment he receives regardless if its advance ...
Cash basis accounting for a taxpayer is determined. The amount of income reported as taxable in 200x is determined.