Question

Naomi and Matt received the following amounts from a tenant who is renting their condominium during the current year (rent is $1500 per month): 2 months rent 2200 Deposit 1600 Rent for two months would normally have been $3000, but the tenant paid $800 for plumbing repair. The repair would normally have been paid by Naomi and Matt but the problem occurred while they were out of the town. How much should Naomi and Matt report as rental income for the current tax year? C

A. $2200
B. $2400
C. $3000
D. $4600

Answer 1

$3000

Step-by-step explanation:

If a tenant pays an expense usually paid by the taxpayer in place of rent, that expense is considered as part of rental income to the taxpayer.

The income to be included will be: $ 2200 paid as deposit, Plus $ 800 paid for plumbing repairs.

= $2200+$800

=$3000