A client received a $2,000 security deposit from a tenant, part of which was used...
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Accounting
A client received a $ security deposit from a tenant, part of which was used to cover cleaning expenses after their eviction for property damage. The tax treatment of this security deposit is:
Only the amount retained to cover repairs is included as income
The full $ is included as income in the year received
It's considered a nondeductible personal expense
It's added to the property's basis
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