How do I determine the property tax on the rent received as I have given the premises on higher rent to a Company? Are there any guidelines set by the BMC?
You must report all income on the return for the year you actually receive it , even though it may be credited to your tenant for a different year. If you receive rent for January 2011 in December 2010, for example, report the rent as income on your 2010 tax return. If you receive a deposit for first and last month's rent, it's taxed as rental income in the year it's received. If you receive goods or services from your tenant in exchange for rent, you must report the value of the goods or services as rental income on your return for the year in which you receive them.
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