Report security deposits on my 1099?

Asked about 2 years ago - Torrance, CA

I recently had a new tenant move into a house I’m leasing and they gave me a $2000 security deposit. Since I’m just holding on to it till they move out or damage something, do I have to report this as “rental income” on my 1099?

Attorney answers (1)

  1. Frank Wei-Hong Chen

    Contributor Level 20


    Lawyer agrees

    Answered . No. A security deposit is not income for the landlord. It belongs to the tenant and must be returned to the tenant, unless there is a basis to deduct from the deposit pursuant to Civil Code section 1950.5.

    Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is... more

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