Minimizing rachel current tax liability

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Rachel owns rental properties. When Rachel rents to a new tenant, she usually requires the tenant to pay an amount in addition to the first month's rent. The additional amount serves as security for damages to the property and the tenant's failure to pay future rents. How should the payments be characterized (e.g. on lease documents) to minimize Rachel's current tax liability?

Reference no: EM13159946

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Minimizing rachel current tax liability : The additional amount serves as security for damages to the property and the tenant's failure to pay future rents. How should the payments be characterized (e.g. on lease documents) to minimize Rachel's current tax liability?
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