rental property purchase with rent credit

What is the name of your state? CA

I purchased 2 rental properties on 12/15/2004. The closing statements list "credits to purchaser" (me) for 1/2 months rent and security deposits for each unit. These credits were deducted from the purchase price (i.e. I never actually received any cash for them). Do I have to report the credits I received for the rent on the closing statements as rental income? Or can I report $0 income in 12/04 and use the credits to reduce my basis in the property.

Thank you for your help.

I would use them both to reduce the basis, though you could arguably report the portion that was 1/2 months rent as rental income if you wanted to.

Snipes