Tax Tip #4 for Tax Professionals – What to know about Certificates of Rent Paid

 

All rental property owners and managing agents must provide a Certificate of Rent Paid (CRP) to each person who rented from them in the previous year. This law does not apply to tax-exempt properties or members of a manufactured mobile home park cooperative.

Updates for 2019 CRPs

The Minnesota Department of Revenue updated Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund, and the CRP for 2019. We made changes based on feedback from property owners and managing agents.

 

We removed the married checkbox, and each spouse will receive their own CRP.

 

Starting in January 2020, businesses with accounts in our e-Services system can create, print, and submit CRPs electronically through e-Services. Generating and submitting CRPs in e-Services is optional for rents paid in 2019.

 

The new Electronic Certificate Number (ECN) field is generated when using e-Services. This field will be blank if property owners and managing agents do not use e-Services to generate CRPs. If this number is on your client’s CRP, please enter it into your software when completing an M1PR for a renter.

 

Your client should have received a CRP by January 31 if:

• Property tax was payable in 2019 on the property
• Payments in lieu of property taxes were made

What if my client did not receive a CRP or received an incorrect CRP?

They should contact their landlord and request an original or corrected CRP. If your client’s landlord refuses or fails to do this before March 1, your client may contact us to request a Rent Paid Affidavit (RPA). To request an RPA, call us at 651-296-3781 or 1-800-652-9094 (toll-free). Your client must provide information about themselves and their landlord.

For more information, see our Renter’s Property Tax Refund page.