Last Minute Tax Tip - Rental Income

The lower your rental income for the year, the less that you will owe in taxes. By minimizing your rental income, you can reduce your taxable liability.

This does not mean you should stop collecting rent, it just means you might not have to include all the rent you've collected in your taxable rental income.

1. You don't have to report your rental income if you rented out your property or vacation home for 14 days or less.
2. Rental income is taxable in the year it is collected. If you did not receive the last month's rent in the current year, do not report the income in the current year.
3. Exclude Security Deposits from your rental income if you plan on returning the deposits at the end of lease.