- Landlords are starting to receive lump sums for their lease contracts, often receiving cash from next year’s rental revenue.
- But rental income is taxed in the year it is received, according to the IRS. Also, the United States of America has a progressive tax system (i.e., higher taxable income = higher tax rate = higher income taxes due).
- So, how will receiving rent from next year now affect the landlord’s income tax for the current year?
- Would it be helpful to know ahead of time how income taxes are affected by upfront rent?
Please input your figures and choose your filing status. Based on your information, the system will calculate income tax savings due to advance rent.
Current year estimated Income Taxes Due without Advance Rent from next
Current year estimated Income Taxes Due with Advance Rent from next year
Current year Estimated Income Taxes Difference due to Advance Rent from next year
Interested in knowing if advance rent can save you income taxes?