After receiving judgement I placed a lien on the tenants house. He died a few years ago and his daughter inherited the property, She refinanced and repaid the lien plus partial interest.
2007-02-03 01:42:10 · 3 answers · asked by marcobobby 1 in Business & Finance ➔ Taxes ➔ United States
Treat the payment of back rent as rental income in the year received. Do this even if you no longer rent out the property. Put it in a separate column on Schedule E. I would put the interest on the rent on Schedule B. I searched the IRS web site and can't see anything definitive, but that makes the most sense to me.
2007-02-03 02:37:35 · answer #1 · answered by TaxMan 5 · 2⤊ 0⤋
Since the judgement was for nonpayment of rent, you should report this as rental income.
2007-02-03 10:25:40 · answer #2 · answered by jseah114 6 · 1⤊ 0⤋
Yes, unless judgments are for bodily injury the judgment is taxable.
2007-02-03 09:51:50 · answer #3 · answered by ghostpirate7 3 · 1⤊ 0⤋