We allow you to focus on your business while we manage all your accounting, bookkeeping,tax and investments. We give individual attention and advice tailored to your situation at competitive rates. Royalties are payments for the use of certain rights, e.g., intangible rights such as patents. Both are includible in gross income.
Rents are includible in gross income, whether paid in cash or property.
Rents are reported by cash basis taxpayers when received, and by accrual basis taxpayers when due unless they are considered uncollectible. An advance rental is currently taxable even if it is refundable or can be applied against the property's purchase price. But a security deposit is not taxable rent. Where a tenant is required under the lease to pay interest, property taxes, mortgage principal, etc., thus satisfying the landlord's own payment obligation, the payments are treated as rent paid by the tenant to the landlord. The fastest, easiest way to manage you business.