CRP (Certificate of Rent Paid) forms are another example of how real estate is local, local, local. Minnesota landlords, or their managers, have until January 31 to send CRP forms to every tenant that rented from them this year. The forms can be found on the Minnesota Department of Revenue website. If you haven't filled out the forms before, easy to follow directions are included.
What is a CRP form you ask? CRP forms are a method to redistribute wealth from those who pay taxes to those who don't! (Oops, I can't believe I said that!) In all seriousness, in Minnesota, owners of real property who don't live in the property (i.e., rental property owners, landlords) pay a larger tax on their property than do owners who live in the property they own. Owner occupied homes receive a "homestead credit" or reduced tax rate. Landlords, however, pay a much higher tax on their rental property and 19% of that tax is then refunded to the tenants who receive and file their CRP forms for the tax credit! When I was a tenant this seemed like a great idea, but I didn't really understand the process at that time (I was only a tenant for 6 months in Minnesota!). Now, as a licensed agent, former property manager, and current landlord, this form does seem like a program to redistribute my wealth to my tenants!
But, political bias aside, if you are a landlord who does his/her own property management, get those CRP forms delivered to your tenants by the 31st or suffer the possiblity of being fined!
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