Question: Larry rents his townhouse to Sue for $1,400 a month. At the beginning of the lease, he asked for a $2,000 security deposit. When Sue

Larry rents his townhouse to Sue for $1,400 a month. At the beginning of the lease, he asked for a $2,000 security deposit. When Sue moved out at the end of the lease Larry used $1,400 of the security deposit for the last month's rent. What amount of the security deposit will Larry need to include in rental income on his tax return? A. $0 B. $1,000 C. $1,400 D. $2,000

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Understanding Rental Income and Security Deposits Scenario Overview Larry rents his townhouse to Sue for 1400 a month He collected a 2000 security dep... View full answer

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