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 B—RELOCATION ALLOWANCES (parts 302-3 to 302-3) > PART 302-3—RELOCATION ALLOWANCE BY SPECIFIC TYPE > SUBPART E—Employee's Temporary Change Of Station (§302-3.400 to §302-3.429) > 302-3.421—What are the income tax consequences when my agency pays for property management services?

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.

Code of Federal Regulations

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.