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Bill McDonald, a cash-basis taxpayer, is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenant under a 5-year lease dated March 1, 2016, and expiring on February 28, 2021. The tenant made timely monthly rental payments of $500 for the months of January through November 2018. Rents for December 2018 and January 2019 were paid by the tenant on January 5, 2019. The following additional information for 2018 was available: Fuel and utilities $3,600 Depreciation of building 3,000 Maintenance and repairs (rental apartment) 400 Insurance on building 600 What amount should McDonald report as net rental income for 2018
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Bill McDonald, a cash-basis taxpayer, is the owner of a house with two identical apartments. He resi...
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