41 CFR § 302-15.8 - Income tax consequences.

---
identifier: "/us/cfr/t41/s302-15.8"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "41 CFR § 302-15.8 - Income tax consequences."
title_number: 41
title_name: "Public Contracts and Property Management"
section_number: "302-15.8"
section_name: "Income tax consequences."
chapter_number: 302
chapter_name: "RELOCATION ALLOWANCES"
subchapter_number: "E"
subchapter_name: "RESIDENCE TRANSACTION ALLOWANCES"
part_number: "302-15"
part_name: "15—ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586."
regulatory_source: "FTR Case 2025-05, 90 FR 56893, Dec. 8, 2025, unless otherwise noted."
cfr_part: "302-15"
---


# 302-15.8 Income tax consequences.

When an agency pays for property management services, the employee will be taxed on the amount of expenses the agency pays for property management services whether it reimburses the employee directly or whether it pays a relocation services company to manage the residence. Agencies must pay a relocation income tax allowance (RITA) for the additional Federal, State, and local income taxes the employee incurs on property management expenses the agency reimburses.