Prepayment and Late Payment of Rent

The rental deduction may only be taken for the taxable year in which the rent was paid (but see Subsection (3) for special rules as to amounts paid for the last month's rent or as a security deposit); it applies to rent paid after December 31, 1980 for rental periods ending after that date. Example 1 : I, a tenant whose rental period runs from the first to the last day of the month, pays his January, 1982 rent is December, 1981. I will take the deduction for the January, 1982 rental period on his 1981 return, the return for the year in which the payment was made. Example 2 : J pays his October and November, 1981 rent in February, 1982; he may take the deduction for this payment on his 1982 return, the return for the year in which the payment was made. Example 3 : K, a tenant whose rental period runs from the 15 th day of one month to the 14 TH day of the following month paid rent for the December 15, 1980 to January 14, 1981 rental period on December 15, 1980. K is not entitled to a deduction for this payment since the rental deduction applies to rent paid after December 31, 1980.