Ian Bryzek, CPA
Accounting for security deposits on inherited rentals
Security deposits should be tracked as tenant funds with their own history.
A deposit is not simply another month of rent when ownership changes after death.
Keep lease terms, deposit balances, transfer records, and deductions documented.
What to keep with the file
Keep lease terms, deposit balances, transfer records, and deductions documented.
What to gather
- The source documents closest to the transaction
- A dated list of what happened after death
- Statements, invoices, or correspondence that explain the entries
Who usually handles what
- Ian can help identify the tax records and reporting questions.
A practical next step
Make a short timeline and mark any fact that still needs support.
Related guides
This general information is not tax or legal advice. The answer depends on the documents, ownership, timing, and facts of the particular matter.