Reference no: EM13863546
David, a cash basis taxpayer, owns two rental properties. Based on the following information, compute the amount that he must include in his 2012 gross rental income.
Property #1, security deposit on one-year lease received 2/1/12
All of deposit returned at lease end: $1,000
Property #1, payment received 2/1/12 for last month of lease(1/13): $900
Property #1, rental income received in 2012 2/12-12/12: $8,000
Property #2, rental income received in 2012 1/12-12/12: $9,600
Property #2, security deposit received 1/1/12 to be used for last month's rent: $800
Property #2, rent 1/13 received 12/28/12: $800
$ 21,100
$19,300
$18,500
$20,100
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