Certificate of Rent Paid and 1098 Form

Certificate of Rent Paid (CRP)

By January 31, 2010 landlords should have sent out the Minnesota Certificate of Rent Paid to their tenants. The MN Certificate of Rent Paid provides the tenant the form and breakdown of rent paid which they can use to obtain their rent credit when they do their taxes. This is commonly known in Minnesota as the renters refund.

A Minnesota Certificate of Rent Paid should be sent to each married couple and unmarried person living at the house, townhouse or apartment. Each individual should receive their own Certificate of Rent Paid with only their name on it. In the case of a married couple, they count as one individual. So if you have one married couple and two single persons living at your residence, a total of three Certificate of Rent Paid Forms should be sent.
Regardless of who is paying the rent, the landlord must divide the total yearly rent received by the number of individuals equally. The landlord divides the total yearly rent received by the number of Certificate of Rent Paid forms they are sending to the tenants. It may be that one tenant paid more than another or they may have even paid most of the rent. This does not matter. The instructions on the 2009 Certificate of Rent Paid MN form states that the rent stated on the CRP must be divided equally regardless of what was actually paid.

1098 Form

A form filed with the Internal Revenue Service (IRS) that details the amount of interest and mortgage-related expenses paid on a mortgage during the tax year. This form is for contract for deed holders as well. These expenses can be used as deductions on a U.S. income tax form Schedule A which reduces taxable income and the overall amount owed to the IRS. The mortgage lender is required by the IRS to provide this form to borrowers.

If you need any assistance with this or are a tenant/buyer of one of our properties or one of our builder's properties, give us a call at 763-784-3400 or visit our website at www.contractorscapital.com.