How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4768
Type Your Tax Question Here...
bigduckontax is online now

If I were to rent out a commercial property and the future

This answer was rated:

If I were to rent out a commercial property and the future tenant wanted to pay for a fixed 5 year term in advance, could the income received for future rent be carried forward to the specific year for income tax purposes?

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Certainly; in your books of account you would post as follows (assume the rental to be 5K):

Debit Cash/Bank 5K, Credit Rents Received 1K, Creditors 4K. Then each year following you would Debit Creditors 1K and Credit Rents 1K. Simple, as the Merkaat in the TV advert would say. Then for each year you would be declaring 1K of rental income.

I do hope that you have found my reply of assistance.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.