CFR > Title 41 - Public Contracts and Property Management > SUBTITLE F—Federal Travel Regulation System > CHAPTER 302—RELOCATION ALLOWANCES (parts 302-1 to 302-17) > SUBCHAPTER E—RESIDENCE TRANSACTION ALLOWANCES (parts 302-11 to 302-15) > PART 302-15—ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES > SUBPART A—General Rules for the Employee (§302-15.1 to §302-15.13) > 302-15.13—What are the income tax consequences when my agency pays for my property management services?

302-15.13—What are the income tax consequences when my agency pays for my property management services?

When your agency pays for your property management services, you will be taxed on the amount of expenses your agency pays for property management services whether it reimburses you directly or whether it pays a relocation service company to manage your residence. Your agency must pay you a relocation income tax (RIT) allowance for the additional Federal, State and local income taxes you incur on property management expenses it reimburses you or pays on your behalf.

Code of Federal Regulations

Note to § 302-15.13 : 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.