Minnesota rental property owners have to issue a Certificate of Rent Paid to each of their tenants from 2006 by January 31, 2007. The CRP is the State's way of rebating the property owners' taxes to the tenants. I could get on a soap box about this redistribution of wealth program, but hey, I live in Minnesota and that comes with the package!
The forms can be obtained on this website under "CRP Instructions for Landlords". If you're new to the landlord business, the instructions are short and easy to follow. Read them first and then fill out one form for each of your tenants, even if they only rented for one month. If you don't have their current mailing address, it's suggested you send it to the address they rented from you and it will be forwarded. If it's returned, keep the entire envelope with the postmark in the tenant's file in case you are called to task for not sending it!
Bonnie, not being from MN... I'm not quite sure I understand how this "rebating the property owners' taxes to the tenants" thing works. Can you give an example or explain it a bit more? One benefit I see to this is that they can use this "certificate of rent paid" (or a copy of it, if it must be turned in - assuming it's not easy to make a counterfeit) to prove to the next potential landlord that they are paid in full with their previous landlord, or vice-versa, that a landlord can ask to see this to confirm that the prospective tenant hadn't skip any payments - a sort of reference. I sure hope I'm understanding this correctly so far but please correct me if I'm wrong.
Leanne, the CRP is a tax form not a proof of paid rent. The form shows how much the tenant paid for the year 2006 (total rent, not total due) so if they resided in my building one month, I put the total rent for that month in line one. That amount is multiplied by 19% which give the amount that the tenant is eligible to get as a refund from the government when they file for the renter’s rebate. It is a way to redistribute wealth from the land owners to the renters! Homes which are owner occupied in Minnesota get a discount on their taxes. Taxes are higher for non-owner occupied homes, so rent is raised to compensate. The state figures this is the way to refund some of that property tax money to the renter! It’s a dumb system from my perspective!
Dana, The directions for filling out the form are pretty clear at the link above. The best thing to do is call an accountant to know for sure. Here is the quote from the directions that may apply to your situation.
"Unmarried renters: Give a separate CRP to each adult person who lived in the rental unit, even if their name is not on the lease. On the CRP given to each person, provide their name only—do not include others who lived in the rental unit.
If more than one unmarried adult lived in the unit, show that each paid an equal amount of rent, regardless of the amount each person actually paid."
Bonnie,
I did not recieve a certificate for rent paid for 2005. My landlord said I didn't ask so he didn't offer. Is it the lanlord's responsibiity to give me the form? I have since given him the form for 2006 and 2007 for him to fill out.
Sara,
The link above takes you to "Instructions for Landlords". It's not meant to be a service for tenants. That said, I am aware of many tenants who are shocked when I give them a CRP (renter's credit) form. Some have asked what it is since it was the first time they had ever received one. It is NOT your responsibility to provide the form to your landlord, but the landlord's responsibility to give it to you. This paragraph is from the 2007 instructions:
"Penalties
An owner who, without reasonable cause, fails to give a CRP to renters may be assessed $100 penalty for each such instance. Even if the renter owes back rent, the owner must issue a CRP to the renter for rent actually paid." (emphasis mine)
In the real world . . . to many landlords $100 is an insignificant fine. If I were in your shoes, I would rant and rave (usually to my husband) about providing the form for my landlord. I would call him all kinds of names (privately, not to his face) including lazy because he can have the forms mailed to him if he doesn't have a computer. But, the final action I would take would be to give him the form with gritted teeth. It's money the state would give me as a renter and if the only way I can get him to fill out that form is to give it to him, I'd end up doing just that!
Hi Bonnie -
I leased my townhouse during the time it was for sale as to not have to pay the entire cost of it. The lessee paid a low amount - which when figuring out the numbers didn't even cover principal and interest - I continued to contribute monthly to make things whole. They are asking for a crp, saying they can't file their taxes without it. I have since sold the property to another buyer. Am I required to provide one to them?
Thanks!
John,
Even if you are taking a loss on your property Minnesota requires a CRP be given to the tenant. There are directions on the link above (CRP instructions for landlords) regarding the change in ownership as well. The form can be filled out online this year which was a great improvement from my perspective. Just type in the info and print the completed form. All you have to do by hand is your signature!
Bonnie
I really dont think that I should have to ask my landlord every year for the crp form I wish that we could just file with out this . H makes me feal like dirt when he has to fill this out Im not liking ti ask him
Barb, You are right in not thinking you should have to ask your landlord for the CRP form. Technically the landlord is required to provide the form by January 31. The problem is there is little enforcement penalty for those who don't. This is what the directions say about the penalty:
"An owner who, without reasonable cause, fails to give a CRP to renters may be assessed a $100 penalty for each such instance. Even if the renter owes back rent, the owner must issue a CRP to the renter for rent actually paid."
In today's economy, $100 is very little penalty. Speeding is higher than that. In addition I have never heard of a landlord being fined!
The bottom line is that if you want your CRP and he's not doing it, you have to ask for it. It's not right, but may be the only way to get it!
Hi Bonnie
Several years ago I rented a condo for a little over a year with my fiance. Our rent was $935 @ month and we both got back a nice rebate each! no questions! no problems! it did not go thru my tax person or anyone else I just filled out the paper and sent it in! Got around $700 each back....!
Last year I rented for 6 months @ $1795 a month and got a rent credit stating we would get back $803 each, and now my accountant is saying my "fiance made too much (over $32K) so he wont get anything back" and based on "My" adjusted gross income I am only going to get around $300 back! (my acct. hasnt even given me his bill yet so I might recoop gas money....ha..!)
What the heck is up with this crap??!!! My how things change! Is this correct???? I dont mean to sound so uppitty but why should I be having my rebate calculated by another tax table???? its got nothing to do with "My" income nor "My" property tax if I am just a renter............!!! I dont get it!
Your reply will be GREATLY APPRECIATED!
Thank you Bonnie:) oh, if you are able to
you can email me if you would like at footloosestrese@aol.com
KATHY
I am renting a room from a townhome owner; he also lives there. We have a rental contract. Does this fall under the CRP requirement? So far he hasn't provided one, wondered if there was an exception for renting a room in a home vs. renting an apartment/home?
what do i do if i have requested my crp given a new address with notice to vacate but the landlord doesnt do anything by the books who do i contact to make him give me one he said he wasnt going to give one to me because it would mess up his unemployment he was recieving. also if he kept my security deposit as last months rent as aggreed upon does it still count as rent paid on a crp thanks
Nicole,
This quote is from the State of Minnesota website and gives the procedure when you do not get a CRP:
"Certificate of Rent Paid (CRP)
Your landlord is required by law to give you a completed CRP no later than January 31 of the following year. The CRP shows the amount of rent you paid and the amount of property taxes your unit is considered to have covered. You will need the CRP to determine your refund and you must include it when filing your property tax return. Renters who are unable to obtain a CRP from their landlord/s by February 15 should call our tax help line to obtain a Rent Paid Affidavit (RPA).
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The RPA must be included along with cancelled checks or receipts for rent paid when filing Form M1PR.
Rent Paid Affidavit (RPA)
If your landlord refuses to give you a CRP by February 15, or gives you an incorrect CRP and refuses to correct it, you may request a Rent Paid Affidavit (RPA) from the Department of Revenue. You should make every attempt to obtain a correct CRP from your landlord before requesting an RPA.
You will need the CRP (or RPA) to determine your refund, and you must include it with your completed Form M1PR.
How to get an RPA
Call our tax help line with the following information:
<!-- startlist -->- Landlord’s name, address and phone number (required information)
- Address of rental unit
- County in which the property is located
- Your Social Security number
- Your name and present address
- Spouse’s name and Social Security number
- Your daytime phone number
- Number of renters in unit
- Is rent subsidized (Section 8, HUD, etc.)?
- Is this an assisted living facility?
- Amount of rent paid per month
- Dates rented"
My prior primary resedential property is being changed into a rental property now that I am married. Rental license is good. But how does one go about getting a landlord ID? It asks for the landlord ID on the CRP form.
Hi, i was wonering if i could still get a crp from my old landlord. I was renting from him in 2007 and half of 2008?