Reporting NSF tenant's Rental Payment?

[dude7707]

Facts:  In 2022, Cash Basis 1065 T/P, receives monthly rental check.

Same year, check bounces.  

Q.  Record this as:

Dr.  Rental Income - Original Amount of check Rec'd.

Dr.  Bank Charges - NSF Fee

    Cr.  Cash - Total Bank Charge for this transaction. 

Correct?

[abctax55 · Accepted solution]

Looks good to me

[dude7707]

Thanks abctax55 for prompt reply!

"Tax software is no substitute for a professional tax preparer" - Amen to that!

[abctax55]

YVW

As a reminded that you maybe don't need 🙂

You will have to pick up the replacement check as rental income when it IS made good, as well as the reimbursement for the NSF fees (I'd just offset with bank charges when than happens).