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2012-2013 Minnesota Certificate of Rent Paid CRP form and instructions.

January 14, 2013 Leave a comment

2011 Minnesota CRP forms and instructions by MN’s largest landlord.

If you own a property and rented it out to others in Minnesota in 2011, you must provide a CRP to each adult no later than January 31, 2012. I’ve summarized the information to get you started.

  • The CRP form and its instructions can be found on the Minnesota Revenue Department website: www.taxes.state.mn.us under “forms and instructions”.
  • Enter your full name as property owner and your mailing address on the CRP:
  • The CRP form must also include the property tax ID number, the county in which the property is located and the number of units (single family vs. multi-family).
  • If you employ a property management company to assist you with your property rental, include the management company name and mailing address. Some property management companies will handle the CRP process for you as part of their service to you.
  • Enter the renter name(s) and the address of the property: Are your renters married? Provide only one CRP to the couple. Are your renters unmarried? Provide a CRP to each adult showing that each paid an equal amount of rent, regardless of the amounts they actually paid.
  • Did your renter move out before the end of the year? Calculate your CRP based on the actual number of months the tenant was in the property in 2011.
  • Mail it to their forwarding address collected at the time they moved out or mail it to the last known address (your rental property address) with the expectation it will be forwarded. Keep a copy for that tenant on file until August 15 of 2013.
  • Did you purchase or sell the property sometime within the year? Calculate your CRP based on the number of months the renter paid when you actually owned the home.

Calculating the CRP:

  1. Calculate the total rent paid for the year and enter into Line 1 of the CRP. The rent paid to you should include the amount for the unit (home) along with storage space and additional garage space, if applicable. Do not include rent amounts paid by a government agency as a subsidy, the security deposit amount, late charges, delinquent rent or rent for farmland use.
  2. The allowance for 2011 is 17%. Multiply the total rent paid by 17% (.17) and enter the amount on Line 3. This is the amount the renter will input into their Minnesota form M1PR when they file for their “property tax refund”.
  3. Sign the form and keep a copy on file with the tenant’s lease.
  4.  The Minnesota CRP form and its instructions can be found on the Minnesota Revenue Department website: http://www.taxes.state.mn.us under “crp forms and crp instructions”.

Visit www.renterswarehouse.com to learn more about the company and Brenton Hayden based in Golden Valley, MN. # # # Property management specializing in tenant placement, monthly property mgt. and project management with a niche market with unintentional landlords providing services that help people keep their homes, rent them and create rental income with less stress.

Certificate of Rent Paid (CRP) Minnesota – Tips on best practices by property manager!

December 30, 2010 Leave a comment

Tips for Landlords – Completing your 2010 Certificate of Rent Paid (CRP)

If you own a property and rented it out to others in Minnesota in 2010, you must provide a CRP to each adult no later than January 31, 2011. I’ve summarized the information to get you started.

The CRP form and its instructions can be found on the Minnesota Revenue Department website:  www.taxes.state.mn.us under “forms and instructions”.

Enter your full name as property owner and your mailing address on the CRP:

The CRP form must also include the property tax ID number, the county in which the property is located and the number of units (single family vs. multi-family).

If you employ a property management company to assist you with your property rental, include the management company name and mailing address.  Some property management companies will handle the CRP process for you as part of their service to you.

Enter the renter name(s) and the address of the property:

Are your renters married? Provide only one CRP to the couple.

Are your renters unmarried? Provide a CRP to each adult showing that each paid an equal amount of rent, regardless of the amounts they actually paid.

Did your renter move out before the end of the year? Calculate your CRP based on the actual number of months the tenant was in the property in 2010. Mail it to their forwarding address  collected at the time they moved out or mail it to the last known address (your rental property address) with the expectation it will be forwarded.   Keep a copy for that tenant on file until August 15 of 2012.

Did you purchase or sell the property sometime within the year? Calculate your CRP based on the number of months the renter paid when you actually owned the home.

Calculating the CRP:

Calculate the total rent paid for the year and enter into Line 1 of the CRP.   The rent paid to you should include the amount for the unit (home) along with storage space and additional garage space, if applicable.  Do not include rent amounts paid by a government agency as a subsidy, the security deposit amount, late charges, delinquent rent or rent for farmland use.

The allowance for 2010 is 19%.  Multiply the total rent paid by 19% (.19) and enter the amount on Line 3.  This is the amount the renter will input into their Minnesota form M1PR when they file for their “property tax refund”.

Sign the form and keep a copy on file with the tenant’s lease.

Some examples…

Joe Renter and Jeff Tenant, unmarried tenants, rented your home for $1200/month from January 1, 2010 to December 31, 2010 – 12 months.  The total rent paid in the year – $1200 x 12 = $14,400.00.  Divide that by 2 = $7,200.00 paid by each renter.  At 19%, each tenant’s CRP will show $1368.00 on line 3.

Bill and Sally Jones, married tenants, rented your home for $1200/month beginning May 1, 2010. They are renting in the home until May of 2011, however, their CRP applies to 2010 only – May 1 to December 31, 2010 – a total of 8 months.  The total rent paid in the year – $1200 x 8 = $9,600.00. At 19%, the couple’s CRP will show $1824.00 on line 3.

The CRP form and its instructions can be found on the Minnesota Revenue Department website:  www.taxes.state.mn.us under “forms and instructions”.

Visit www.renterswarehouse.com to learn more about the company and Brenton Hayden based in Golden Valley, MN.
# # #

Property management specializing in tenant placement, monthly property mgt. and project management with a niche market with unintentional landlords providing services that help people keep their homes, rent them and create rental income with less stress.

 

 

 

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