If you owned a rental property in Minnesota during 2009, you are required by the State of Minnesota to send each of your tenants a MN Certificate of Rent Paid.  Depending upon the tenant’s income, they may be eligible for a tax deduction for a portion of the rent they paid for 2009. Although you must send your tenant this form, this does not affect any Minnesota taxes you pay or anything else. It is simply for the tenants tax reporting purposes.  You can find the 2009 Minnesota CRP here.

Like most government forms, the instructions are rather confusing and length!  I am not an accountant, government worker, or attorney.  Below are just some suggestions and ideas that I have come up with over the years of filling these out:

• When figuring out the totals, do not include any damage deposits, late fees, or other non-rent payments in the total amount.  Also, only include actual rent paid, not rent billed (or accounts receivable).
• Any rental subsidy amounts (including section 8 and other non-profit agencies) should not be included in the total line on the CRP. Only include rent paid by the tenant(s).  In your accounting system remember to mark each subsidy payment in the memo field to make this easier at the end of the year.
• When calculating the total amount, you must divide the total rent paid by the total number of adults in the unit, regardless of how much rent each paid.  Married renters are considered one person, again regardless of how they paid.  You should then send a form to each adult.  This may cause some frustration among roommates, but just tell them you are simply following the instructions.
• If you have many 2009 Certificate of Rent Paid forms to send, I recommend that you fill in a copy of the form with your business information and make copies of that original CRP to save yourself time. With almost 30 rental units, you can imagine how much time this saves me!
• Alternatively, the Certificate of Rent Paid form comes in a PDF format, so I purchased a copy of Adobe Acrobat and opened the PDF in edit mode.  I then entered my business info once and then simply changed the property and tenant info and printed them out (I am faster at typing than writing!).
• Often you will have tenants that have moved out during the year.  Personally, I just wait for past tenants to call me and request the CRP.
• The landlord must send the tenants the MN Certificate of Rent Paid by 1/31/2009 or face a $100 penalty per CRP not sent by the required date.
• Lastly, make a copy of all of the Minnesota CRPs for yourself.  I will always get a least 2-3 calls in August (when the tenants turn these in for their taxes) from someone looking for a new copy.  It will save you having to recreate the wheel when they lose their copy.

If you have many to do, simply do a couple each night until you have them all finished. Turn the music or TV on and just fill them out!  Good luck!