The IRS is very (well, kind of) clear about the treatment of damage or security deposits. The agency does not recommend the owner treat receipt of deposits as income, whether you use cash or accrual as your method of accounting. (See Topic 414 – Rental Income & Expenses, paragraph Rental Income).
Iowa Law requires rental deposits be held in a separate account, which may be a trust account. It’s not only a good practice it has become the law. And, if you’re a third-party manager, it must be a trust account as is subject to audit by IREC. But that is not our question. The question came up, “How should the receipt of deposits be treated in the chart of accounts?”
We’ve been wanting to offer a high-quality, interactive class like this one — with a comprehensive student manual, PowerPoint(tm) and video, with 8-hrs of REALTOR(tm) and PHP CEU’s — for over a decade!
James Alan Smidt was our instructor. This first offering was held at the IaREIA-ILA office, and intentionally kept small to ensure class participants would enjoy the benefits of personal interaction, and to make sure the course was a good fit for beginner to intermediate real estate investors.
While it was a tight fit in our small-ish conference room, and the first, icy snow fall of the season a bit distressing, the immediate feedback was very encouraging!
The IaREIA School of Real Estate is offering training for Landlords, Property Managers and Realtors on Sept 9, 2016 in both Marion and Clive, IA.
Christopher Warnock, Attorney from Iowa City kicks off the event from 9:00 – 12:00, at the Kirkwood Community College Training Center in Marion. We will be simulcasting this live event via interactive Video Conferencing at our home office in Clive (location subject to change as the room is nearing capacity).
Lunch will be on your own, from 12-1:30, followed by two classes taught by Andrew Lietzow, MBA, Exec Dir of IaREIA-ILA:
1) eFiling for Small Claims eviction actions – 1:30-2:30 (with Christopher Warnock)
2) IaREIA-ILA Lease and Addenda – 2:45-3:45
Registration is at www.IaCHP.org
Press Release – NID Public meeting For those who own or manage rentals within the jurisdiction of the City of Des Moines, heads up!
- WHAT: Two public meetings regarding rental code enforcement
- WHO: Community Development Department, Neighborhood Inspection Zoning Division (Open to Landlords, Property Managers & the Public)
- WHERE: City of Des Moines City Council Chambers, 400 Robert D. Ray Dr, Des Moines, IA 50309
- WHEN: March 15, 2016 at 5:30 and 7:00 pm
For more information, contact Shekinah Young, Interim Chief Communications Officer for the City of Des Moines at (515) 283-4057.