Code of Federal Regulations Title 41. Public Contracts and Property Management § 41.302–3.421 What are the income tax consequences if my 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.