[Anonymous]

Does rent receivable in advance causes deferred tax liability or asset? I believe it causes deferred tax asset, however, there is 1 CPA problem I did indicates otherwise.

Please, Help

[sonygal57]

If you are showing that you are paying taxes on the unearned rent now instead of later…when it is earned…then it would be an Deferred tax liability asset because the taxes are already paid.

I think that maybe what you are looking at as a liability may have been a security deposit?

Good old Gandalf, "All we have to do is decide what to do with the time that is give to us."
"Not all those who wander are lost."

FAR: I slayed the Dragon!
BEC: I defeated the Siren!
AUD: I eliminated Medusa!
REG: ?????

[SeattleAccountant]

Increase in rent RECEIVABLE = not taxable yet, thus, DTL for future purposes

is not the same as

Getting rent PAID up in advance (actually receiving it) = taxable now, thus, DTA for future purposes.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Author]

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