Mr. Slum Lord, a cash-basis taxpayer, owns and operates an apartment building. During Year 1, Mr. Lord received rent payments of $48,000 and security deposits of $5,000. The rental payments included $4,000 of advance payments to be applied to the last month of each tenant's lease. In addition, on January 2, Year 2, Mr. Lord received a $300 check from one of his tenants for past due rent. What is the amount of Mr. Lord's gross rental income for Year 1?

Answer rating: 100% (QA)

For cashbasis taxpayers like Mr Slum Lord income is generally recognized when received However there ... View the full answer