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Sarah owns a rental house. On 6/1/20x1, Sarah rented out the house to David, a new tenant. The terms of the rental agreement stated David
Sarah owns a rental house. On 6/1/20x1, Sarah rented out the house to David, a new tenant. The terms of the rental agreement stated David would pay Sarah $2,000 a month for rent, starting on 6/1/20x1. In 20x1, David paid Sarah a total of $10,000 in cash for rent. Which of the following is true for 20X1? Group of answer choices A. Sarah includes $12,000 as rental income. B. Sarah includes $0 in rental income because David paid Sarah by cash, not by check. C. If David files a Form 1099-MISC listing the amount of rent he paid Sarah, Sarah will report the listed amount as rental income. If David does not file a Form 1099-MISC, Sarah does not need to report any income from the rental house. D. Sarah reports $10,000 as rental income
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