Question
On May 1, 2020, Maggie Mays (cash basis) leased property she owned to Tommy Patrick for rent of $1,000 per month. Tommy paid Maggie $2,000
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On May 1, 2020, Maggie Mays (cash basis) leased property she owned to Tommy Patrick for rent of $1,000 per month. Tommy paid Maggie $2,000 as a damage deposit which will be returned at the end of the lease term. In addition, Tommy paid Maggie $6,000 as advance rent which is to be applied to rent for the last six months of the lease term. The lease is to run for a one year period beginning on May 1, 2020. What is Maggie's rental gross income for 2020. Assume that Tommy also made six $1,000 other rental payments to Maggie during 2020,
A $12,000
B 8,000
C 14,000
D 6,000
E None of the above
E None of the above
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Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
