A taxpayer buys a tract of land with a small house on it. The house sits vacant for several months but finally, on December 1, Year One, they rent the property to Mr. Lance for one year. The rental charge is $1,000 per month and he pays for the entire year in advance on that date. At the end of December, the taxpayer is beginning to prepare their income tax return for Year One. 

How much of this rental income should they include in their Year One return?

Answer rating: 100% (QA)

The taxpayer should include 1000 in their Year One return as rental income Thi... View the full answer