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General Landlording & Rental Properties

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Nathan Emmert
  • Investor
  • San Ramon, CA
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Non-Refundable Security Deposit

Nathan Emmert
  • Investor
  • San Ramon, CA
Posted Apr 24 2012, 14:14

The rental I purchased last week had fairly significant security deposits in place, a portion of which was labeled as "non-refundable".

Am I correct to assume that's essentially income?

If so, from a tax perspective, when is that income realized... when the deposit is made (or transferred) or when the security deposit account is closed out when the lease expires/tenant leaves?

Just curious how to keep my books... thanks!

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