Rental property taxes in DC

[Anonymous]

I own a rental property in DC. I have been preparing my own business taxes for the last couple of years after initially using an accountant for the first couple of years.

Today I realized I should have been filing form FP-31, personal property taxes: https://mytax.dc.gov/WebFiles/Documents/2022%20FP-31%20Instructions.pdf

ASAIK my accountant never filed that form so I didn't do it either. Is this a big deal? Should I get an accountant involved or is this something I can do myself.

I realized this after logging into the myDCTAx page and seeing a request to file for the last 3 years.


TIA

[Anonymous]

Do you file D-30?

https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2021_D-30ES_Booklet.pdf

[Anonymous]

OP here, Yes I do fill D-30. I think the question is I need to do FP-31 as well? I didn't think I did, but it is showing up in myTaxDC profile and a link to file it.

[Anonymous]

Not an accountant but my accountant files a D-30 for our rental property. I'm unfamiliar with the FP 31. But that doesn't mean it isn't required. Just that it doesn't ring a bell for me.

[Anonymous]

Yes, you are supposed to do it. Weirdly, it's due in June. You almost definitely won't owe anything for it, so it's extra dumb. You should do it, and then call your council member (plus the at-large members) and see if one of them will introduce a bill that small landlords (let's say fewer than 4 units to match rent control law) of unfurnished properties no longer have to file this form. None of us owe personal property taxes, so it's a net loss for DC to have to process the returns and it's a big waste of time (and money if you hire an accountant to do it, though you can likely do it yourself).

[Anonymous]

Hello - we also see this on our tax account. We rent an unfurnished single family house in DC. Does anyone know what schedules on the FP-31 would need to be filed for that?

[Anonymous]

Anonymous wrote:Hello - we also see this on our tax account. We rent an unfurnished single family house in DC. Does anyone know what schedules on the FP-31 would need to be filed for that?

I own a rental in DC and have never heard of this. From the link a PP posted it says the following:

"Generally, every individual, corporation, partnership, executor, administrator, guardian, receiver, trustee (every entity) that owns or holds tangible personal property in trust must file a District of Columbia (DC) personal property tax return, Form FP-31."

This seems like it only applies if the property is held in trust?

[Anonymous]

It is so stupid. There is a ridiculous exemption amount too. But if you don’t file it they will hold up your business license. So now thousands of people file a form that does nothing but take time to review. Then again the purpose of the law is to employee people, isn’t it?

[Anonymous]

Anonymous wrote:Hello - we also see this on our tax account. We rent an unfurnished single family house in DC. Does anyone know what schedules on the FP-31 would need to be filed for that?

Was there ever a response to this question? We're in the same boat!

The exemption amount appears to be $225K - does that refer to the value of the property itself? If so, why does everyone end up exempt and with a 0 liability?

[Anonymous]

So, I did receive a notice from DC tax department that my tax liability is zero and I do own a small rental condo in DC. The value of the condo would be about $135K.

[Anonymous]

Hi, which schedule applies for rental property? Can someone please help?

[Anonymous]

I would like to know it as well.

[Anonymous]

i"m going through this now as it held up my business license. They made me call the CleanHands organization, making me think I owed taxes from long ago... no, I hadn't filed this FP-31 that no one heard of before. I had just started renting out my co-op through a property management team and they couldn't get any further until I had to call DC OTR. They hadn't heard of FP-31 either.
So yes you have to file FP-31 through the DC Tax website. They make you file for 2023, which was due 31 July 2022. When I was on the phone with them I just said "Why do I need to file taxes for a year that has not even occurred yet?" It's yet another inefficient DC thing. I filed Schedule D-1 with it as well. From all of the formulas, you will likely not owe any taxes. Paper drill.

[Anonymous]

For this, does the property has to be above certain amount?

How much is property worth, PP?

[Anonymous]

Anonymous wrote:i"m going through this now as it held up my business license. They made me call the CleanHands organization, making me think I owed taxes from long ago... no, I hadn't filed this FP-31 that no one heard of before. I had just started renting out my co-op through a property management team and they couldn't get any further until I had to call DC OTR. They hadn't heard of FP-31 either.
So yes you have to file FP-31 through the DC Tax website. They make you file for 2023, which was due 31 July 2022. When I was on the phone with them I just said "Why do I need to file taxes for a year that has not even occurred yet?" It's yet another inefficient DC thing. I filed Schedule D-1 with it as well. From all of the formulas, you will likely not owe any taxes. Paper drill.

I am going through the same issue right now. Can everything be done online or is it more inefficient paper process?