Kansas Statutes 58-9a,405. Receipts from rental property
Terms Used In Kansas Statutes 58-9a,405
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: includes personal and real property. See Kansas Statutes 77-201
To the extent a fiduciary does not account for the management of rental property as a business under Kan. Stat. Ann. 2023 Supp. 58-9a-403, and amendments thereto, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods:
(a) Must be added to principal and held subject to the terms of the lease, except as otherwise provided by law other than this act; and
(b) is not allocated to income or available for distribution to a beneficiary until the fiduciary’s contractual obligations have been satisfied with respect to that amount.