QuickBooks and Security Deposit

[Bryan Petrinec]

I am looking for some guidance on managing security deposits, repairs, and return of the balance from a bookkeeping standpoint.  This is the first time I am going through this and I want to make sure I am handling it correctly in QB (I use Desktop Pro 2018).

The security deposit was held as "Other Current Liability" for the the sake of this discussion was $1000.

Tenant moves out - some minor repairs are needed that are charged back to the tenant in the amount of $200

I pay my handyman $1500 to turn the apartment, which includes repairing the tenant damage

So here is my confusion - I pay the tenant the remainder of the SecDep of $800 from the Security Deposit account.  Do I allocate the $200 remaining to the operating account and then becomes income?  Or do I spit the repairs (or ask for 2 invoices) and pay the $200 directly from the SecDep account to cover the repairs and keep the remaining $1300 in repairs and maintenance?  Come tax time, I assume either way I can only deduct the $1300 and not the full $1500.  

Again, this is my first go at this and I want to make sure I am doing right now to prevent issues later.  Thanks in advance.