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41 C.F.R. § 302-3.421   What are the income tax consequences when my agency pays for property management services?

Title 41 - Public Contracts and Property Management

Title 41: Public Contracts and Property Management
PART 302–3—RELOCATION ALLOWANCE BY SPECIFIC TYPE
Subpart E—Employee's Temporary Change Of Station
Expenses Paid During Assignment

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§ 302-3.421   What are the income tax consequences when my agency pays for property management services?

When your agency pays for property management services:

(a) You will be taxed on the amount of property management expenses your agency pays, whether it reimburses you directly for your expenses or pays a relocation services company to manage your residence; and

(b) Your agency will pay you a relocation income tax allowance under part 302–17 of this chapter for substantially all of the additional Federal, State and local income taxes you incur on the expenses your agency pays.

Note to §302–3.421: You may wish to consult with a tax advisor to determine whether you will incur any additional tax liability, unrelated to your agency's payment of your property management expenses, as a result of maintaining your residence as a rental property.

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