In December 2016, Mary collected the December 2016 and January 2017 rent from a tenant. Mary is a cash basis taxpayer. The amount collected in December 2016 for the 2017 rent should be included in her 2017 gross income.

Question

Quizplus · Accepted Answer

For a cash basis taxpayer, income is reported in the year it is received. Since Mary received the rent in December 2016, it should be included in her 2016 gross income, not 2017.

In December 2016, Mary Collected the December 2016 and January