During the year, Fred, a tenant, moved to another state. Fre…
During the year, Fred, a tenant, moved to another state. Fred paid Ethan $1,100 to cancel the two-year lease he had signed. Edan subsequently began renting the unit to Will in the same year. Will paid the first and last months’ rents of $1,00 each and a security deposit of $800. In addition to the regular rental income from the apartment, Edan must include the following in gross income: