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Diego, a cash basis taxpayer, leased property on June 1, 2021, to Carlos at $325 per month. Carlos paid Diego $325 as a security

 


Diego, a cash basis taxpayer, leased property on June 1, 2021, to Carlos at $325 per month. Carlos paid Diego $325 as a security deposit which may be applied as the last month's rent of the lease. Also, during 2021, Carlos paid $650 in advance rent for the months of January and February 2022. What amount of rental income must be included in Diego's return for 2021?

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