At the end of every January, however, I am forced to get off the couch and spend time doing my state required Certificates Of Rent Paid (CRPs). And you do too.
The CRP is viewed by the Minnesota Department of Revenue as a means of giving tenants some credit for the portion of the property tax their rent paid.
The state of Minnesota requires anyone who owned a rental property, or their property manager, to send any and all adult renters a CRP no later than January 31, 2018.
To calculate, you simply take the total amount of rent paid for the use of the unit, storage and/or parking space and multiply it by 17 percent and put all your math on the appropriate lines on the form.
If your residents are married, you only need to issue one CRP for the two of them. All unmarried tenants must receive individual forms.
If you sold the property during the year, then you’re only responsible for issuing a CRP for the months you owned it. If you bought an investment property, you are responsible for issuing one for rent from the date of closing forward.
So what happens if you sleep right through the deadline? You may face a penalty of $100 for each CRP you miss. If you own a lot of rental property, that could total quite a pit.
Click here to get everything you need to complete your CRPs.