9.1 Reporting Rental Real Estate Income and Expenses
On the cash basis, you report rent income on your tax return for the year in which you receive payment or in which you “constructively” receive it, such as where payment is credited to your bank account.
On the accrual basis, you report income on your tax return for the year in which you are entitled to receive payment, even if it is not actually paid. However, you do not report accrued income if the financial condition of the tenant makes collection doubtful. If you sue for payment, you do not report income until you win a collectible judgment.
Schedule E reporting.
Use Schedule E to report rental real estate income and expenses unless you are providing substantial services for tenants that go beyond the provision of utilities, trash collection, and cleaning of public areas. For example, if you operate ...