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    tony110's Avatar
    tony110 Posts: 1, Reputation: 1
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    #1

    Apr 22, 2008, 01:17 PM
    Is prepaid rent income?
    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's Avatar
    delite Posts: 202, Reputation: 3
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    #2

    Apr 23, 2008, 09:32 PM
    If you have use of the money, it is income
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