The security deposit you receive from your tenant is reported as income at the time you decide to keep all or part of the deposit because your tenant did not live up to the terms of the lease. For example, if you used part of the deposit as a cleaning fee or to replace a broken fixture, that amount is considered to be income to you. If all or part of the security deposit is eventually used as payment for the 3 final month’s rent, it is included as income when the payment is applied towards the rent. If the security deposit is returned to the tenant, do not include it as income.
Articles in this section
- What must I do if I sell my rental property?
- Is the GET a sales tax?
- Because of all of my expenses, depreciation, etc., I always show a loss on my income tax return. Do I still have to file a Hawaii income tax return?
- Is there any minimum amount of tax I have to pay? If I only rent out one room in my house, will I still have to pay the general excise and transient accommodations taxes?
- If the general excise and transient accommodations taxes are levied on gross rental income, does that mean that nothing is deductible?
- If I rent an accommodation to relatives such as my son and his family, is the rental income I receive subject to the general excise and transient accommodations taxes?
- Will it make a difference if I visibly pass on the general excise and transient accommodation taxes?
- What percent of my gross rental income will I have to pay as general excise and transient accommodations taxes?
- What do I need to do to register for the general 5 excise and transient accommodations taxes?
- Will I be issued one identification number for the general excise tax and a separate identification number for the transient accommodations tax?