Is prepaid rent income?

tony110 · #1 Apr 22, 2008, 12:17 PM

Hello,

Through out college, I understood that prepaid rent is a liability for an accrual-basis taxpayers and income for cash-basis taxpayers. However, in a CPA course review, it states that "Prepaid rent is income when received even for an accrual-basis taxpayer".

Please clarify.

Thanks,

-Tony

delite · Apr 23, 2008, 08:32 PM

if you have use of the money, it is income



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