Property Management in Boise Explains Rental Incomes


Boise property management companies explain common rental income and expenses that are required to be declared on IRS tax returns. It is important that landlords contact tax professionals or experienced property management in Boise for exceptions.


The IRS defines rental income as the fair market value that landlords receive from real estate properties. This is considered rental income and is taxable. Landlords can deduct required rental property expenses from rental incomes. Property management in Boise, ID highlights examples of rental income.


  • Lease Cancellations - When tenants are required to pay lease cancellation fees, this amount is subject to landlords' income taxes.
  • Advancements - When tenants pay first and last months' rents, these too are subject to taxation.
  • Expenses - When landlords require that tenants pay expenses, the IRS requires this be declared as income. Landlords can, however, use these expenses as tax deductions.
  • Deposits - Landlords that require pet or damage deposits should not declare these holdings as income if they are refundable. Only the amount kept by landlords should be included in rental incomes, as the rest is returned to tenants. Since these funds are used for repairs, landlords should keep thorough records, as these expenses can be written off and deducted from incomes. In contrast, nonrefundable deposits are considered income and should be declared in the year they are received.


Landlords can also take advantage of several tax deductions, which includes depreciation, repairs, uncollected rents, and operating expenses. While subject to limitations, rental expenses are permitted to exceed collected rents.


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