Bookkeeping

Extra Taxes on Free Room?

I have a client who owns a small apartment complex. He wants to hire on a full time on campus landlord and wants to include an apartment in the salary. Does he need to withhold taxes from the new landlord’s pay for the market cost of the apartment or another amount? Or does he not need to include the apartment in salary computations?

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Answer

  1. 74 Answers

    Hi, as a resident manager or landlord living in the apartment is a condition of employment. As a result, the rent amount that would normally be collected for such a position would not be included as a part of the landlord’s income. There are no federal requirements such a federal income tax, social security tax, medicare tax, or federal unemployment. However, there may be state taxes such as state disability and state unemployment. I would check with the Department of Revenue for the state you are located in to see what the state requirements are.

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