Where do you record this in your bookkeeping? Is it considered a Other Current Liability? I know you don't claim it as income unless you use it for rent or repairs. I'm just wondering in using QuickBooks how the account should be set up on your Chart of Accounts.
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Asset
Don't have Quickbooks (yet--I'm workin' on it), but it's an asset, isn't it? He doesn't owe them--they owe him (if he doesn't trash the place).
Why not "Security Deposits" in the "Other Assets" section? -
Rental - Security Deposit
When I looked at it, I thought it was wrong, that it wasn't a liability, although if the renter moves out and everything is ok, than the landlord has to give it back.Comment
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Deposit
Oh, you're doing the landlord's taxes then, right? I was looking at it from the tenant's point of view. It would be a liability to LL. Haven't done one of those before though, so don't exactly know what you'd call it. Maybe "Security Deposits Payable" and zero it out when the tenant moves.Comment
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Thanks sounds good.Comment
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security deposit
why not cash reserves and transfer it to rental income (other) when the client moves.Believe nothing you have not personally researched and verified.Comment
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