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Rajeev Agrawala's profile image
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Rajeev Agrawala
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Rajeev Agrawala
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General Landlording & Rental Properties

Tax treatment for Interest on rental security deposit

Rajeev Agrawala
Posted

Hi,

I have separate accounts setup for security deposit in Baselane. When I receive interest next year would I be responsible for paying the tax on that. How do people allocate tax to the renter rather than paying it themselves?

Thanks.

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Nathan Gesner
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Nathan Gesner's profile image
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Nathan Gesner
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Nathan Gesner
  • Real Estate Broker
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ModeratorReplied
Quote from @Rajeev Agrawala:


Here's a guide with links to the actual State law: NJ Security Deposit Law

It appears all interest must be paid to the Tenant, so the Tenant would pay the taxes on the interest, not you.
  • Nathan Gesner
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