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sbear
Returning Member

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

I was out of the country for a while so I sublet my apartment for a few months. I sublet my apartment through the rental company that I rent from, (my subletter wrote up a subleasing agreement with my rental company, but under my contract) and my subletter arranged monthly rent payments with the rental company directly, so that I was not involved in the exchange of rental money between my subletter and the rental company. I am pretty sure I was still the main person on that rental contract, but the money exchange was solely between them. I did, however, collected two months' rent as security deposit for the duration of the sublease then returned it at the end.

However, I received my CRP from my landlord saying that I paid the full-year's worth of rent, even though I only paid x months of it (the other months were paid by my subletter).

Q1. Does the monthly payments my subletter made to the rental company for the other months still count as *my* income? 

Q2. Is my CRP wrong? Should I ask my landlord to give me a fixed CRP with the correct amount I paid?

Thanks!

1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

No, it's not your income.  Since this is rent paid to the landlord, and not to you personally, it is not income to you.  You formalized an agreement that the renting company allowed someone else to rent the apartment while you were away instead of you.  Since you returned the deposit you had collected, this is also not income.

With regards to your second question, it depends.  What the landlord in essence is reporting is that since you are the name on the contract and the rent was paid, you get credit for fulfilling your end of the contract.  However, if you claim rent in any way on your tax return (the Federal return does not have a rent deduction but some states do), you only will include in the return the amount of rent that you personally paid, regardless of what the CRP says.  I don't think you need to ask your landlord for a new CRP unless it is an official tax document (which it likely is not).

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9 Replies
DanielV01
Expert Alumni

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

No, it's not your income.  Since this is rent paid to the landlord, and not to you personally, it is not income to you.  You formalized an agreement that the renting company allowed someone else to rent the apartment while you were away instead of you.  Since you returned the deposit you had collected, this is also not income.

With regards to your second question, it depends.  What the landlord in essence is reporting is that since you are the name on the contract and the rent was paid, you get credit for fulfilling your end of the contract.  However, if you claim rent in any way on your tax return (the Federal return does not have a rent deduction but some states do), you only will include in the return the amount of rent that you personally paid, regardless of what the CRP says.  I don't think you need to ask your landlord for a new CRP unless it is an official tax document (which it likely is not).

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sbear
Returning Member

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

Hi, Thank you so much for your quick answer. I am in Minnesota and we have to file the property tax return, which is my main concern. The property tax return form says to enclose the CRP when filing, and if the rent amount I report to have paid is different from the amount shown on CRP, I'm worried they'll think I filed wrong. What should I do?
DanielV01
Expert Alumni

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

Is the property tax return a part of the state income tax return, or is it separate?  
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sbear
Returning Member

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

It is separate.
DanielV01
Expert Alumni

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

If it's separate, contact the board in charge of that tax and ask their recommendations.  It sounds like your landlord did this paperwork very above board and I'm sure will cooperate so you get the right result.
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sbear
Returning Member

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

Got it. Thanks so much! I'll give them a call.
DanielV01
Expert Alumni

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

Best of luck to you.
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sbear
Returning Member

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

I talked to the MN Dept. of Revenue (Property Tax) and they said I should ask my landlord to send me a new CRP saying I paid for the months I paid for, and that my subletter should get a new CRP as well saying they paid for the rest of the months. Also confirmed my subletter paying directly to the rental office didn't count as my income.
DanielV01
Expert Alumni

(Q.updated) I sublet my apartment that I don't own. My subletter paid rental company directly during the subleasing period. Does this count as *my* income?

Glad you were able to confirm.  Good luck.
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