What is considered rental income?

Rental income is specifically defined as payments received from tenants who rent property. This income is generated through leasing arrangements where individuals or businesses pay the property owner for the use of real estate, such as residential apartments, commercial offices, or other types of rental properties.

This classification of income is crucial for tax purposes, as it is often subject to specific rules and regulations regarding reporting and deductions. Other types of income, such as proceeds from selling property or income from investments in stocks, fall into different categories and are treated differently under tax law. Understanding what constitutes rental income helps ensure accurate reporting and compliance with tax obligations.