The information below is for Cornell units paying for real estate rentals (for visitors, employees, etc.)
Property Leased by Cornell
Rental agreements for property leased by Cornell (or from Cornell) require the unit to contact Cornell's Real Estate office, which will then contact the offices of Risk Management and Insurance and University Counsel, if needed.
Cornell should pay the landlord (or agent) directly for property leased in Cornell's name. The payment request also must include a copy of the lease naming Cornell as lessee, and must be signed by Cornell Real Estate. If the rental property is provided to individuals as lodging, the payment request also must include the name of the visitor using the property, his or her length of stay, and the purpose of his or her visit. See information below on tax issues.
The university's insurance policies do not cover personal property of individuals.
Property Leased by an Individual
If a property has been leased by an individual, Cornell should neither sign the lease nor pay rent directly to a landlord. However, if there is a compelling business reason, units may reimburse the individual for the rent expense.
Note: Leases with durations of less than one month are not permitted.
The payment request must include the individual's social security number, permanent mailing address (not the department address), and a documented business purpose stating the individual's projected length of stay. See information below on tax issues.
Nontaxable Income vs. Taxable Business Expense: If the lodging is for a short-term visitor to Cornell for business, the payment is generally treated as a nontaxable business expense.
If any of the following conditions apply, the payment is generally treated as taxable income:
Note: "Short-term" is generally defined as three months or less. Many visitors who originally plan a short visit extend their visit beyond IRS' strict twelve-month period for temporary work locations. This triggers retroactive tax issues visitors and for Cornell. Contact the Tax Compliance Office to discuss exceptions to the three-month rule.
Fair Market Value: Lodging that Cornell provides below fair market value creates numerous tax issues. "Value" is generally based on the amount Cornell pays to, or on behalf of, the individual, or in some instances, it is based on a calculation of the fair market value less the non-reimbursed amount paid by the individual. Fair market value is the price for which a comparable good, service, or property can be exchanged.
