Rental property taxes in DC

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What did you all put for "Kind of business or profession" if it's a condo? And "Number of DC Locations" is 1?

Real estate. If you call OTR they will literally walk you through the form.

Oh amazing - thank you! I'll give them a call!

Yea OTR was not helpful at all - they kept telling me to depreciate printers and copiers in my office (which I don't have).
Can anyone else say what they put for "Number of DC Locations"?

Sounds like you got someone unfamiliar with the form.

You have 1 location per rental property I would guess.

It really doesn't matter since I doubt any small time landlord would have 250K of real property.

[Anonymous]

Not that it's worth it to push when you don't owe anything, but only property held IN TRUST would be required to file this.

https://code.dccouncil.gov/us/dc/council/code/sections/47-1522

I suggest everyone contact their council person to see why this form is required for property not owned/held by a trust and especially landlords with 0 real property.

[Anonymous]

Anonymous wrote:Not that it's worth it to push when you don't owe anything, but only property held IN TRUST would be required to file this.

https://code.dccouncil.gov/us/dc/council/code/sections/47-1522

I suggest everyone contact their council person to see why this form is required for property not owned/held by a trust and especially landlords with 0 real property.

If you are landlord then how come you have "0" real property?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not that it's worth it to push when you don't owe anything, but only property held IN TRUST would be required to file this.

https://code.dccouncil.gov/us/dc/council/code/sections/47-1522

I suggest everyone contact their council person to see why this form is required for property not owned/held by a trust and especially landlords with 0 real property.

If you are landlord then how come you have "0" real property?

Unless someone is a STR LL I don't see how they would have any real property.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not that it's worth it to push when you don't owe anything, but only property held IN TRUST would be required to file this.

https://code.dccouncil.gov/us/dc/council/code/sections/47-1522

I suggest everyone contact their council person to see why this form is required for property not owned/held by a trust and especially landlords with 0 real property.

If you are landlord then how come you have "0" real property?

Unless someone is a STR LL I don't see how they would have any real property.

And certainly not any held or owned in trust.

[Anonymous]

So just so I'm clear, if I need a certificate of clean hands in order to renew my business license, even though I filled out a personal tax return in DC for 2021, I need to complete a D-30, regardless of whether I had GROSS rental income above or below $12k? My net rental income was a loss, but my gross is higher than $12k, so in my case I would definitely need to file a D-30, correct?

[Anonymous]

Anonymous wrote:So just so I'm clear, if I need a certificate of clean hands in order to renew my business license, even though I filled out a personal tax return in DC for 2021, I need to complete a D-30, regardless of whether I had GROSS rental income above or below $12k? My net rental income was a loss, but my gross is higher than $12k, so in my case I would definitely need to file a D-30, correct?

Correct

[Anonymous]

Anonymous wrote:So just so I'm clear, if I need a certificate of clean hands in order to renew my business license, even though I filled out a personal tax return in DC for 2021, I need to complete a D-30, regardless of whether I had GROSS rental income above or below $12k? My net rental income was a loss, but my gross is higher than $12k, so in my case I would definitely need to file a D-30, correct?

PP here, Correct - and you will minimally owe $250.

[Anonymous]

So glad to find this thread, which validated everything I (as a homeowner renting the house out while posted overseas) was puzzling over -- what is this, how does it apply to me, etc. Like others, I had never heard of this until I could not get my Clean Hands cert. The instructions are so unclear. But I listed the townhouse under Schedule D2, everything else was Zero, and done. A relief, but also an unnecessary PITA, given that we file the D-30 for the "business" of renting out the house...

[Anonymous]

You won’t actually owe any taxes under the personal property return as there is a minimum amount of personal property you have to own before it applies. I think that figure is $100K. For years any accountant would have told you not to file but recently dc stopped renewing rental licenses unless it was filed. Since the underlying return is a zero dollar return there is no penalty for late filing

The whole thing is an exercise in futility. The cost of compliance in rental property owners will be not insignificant and the benefit to dc literally zero. This is being enforced to create the need to hire more employees in the tax office to review the form. It is the perfect example of what is wrong with DC.

[Anonymous]

Anonymous wrote:I figured it out. The FP-31 is only for "personal' items (dvd's, cd's, tv's ,etc) left behind in the condo or apartment you're renting - it has nothing to do with the actual condo value, cost, depreciation etc. Wow, took me forever to figure that out but a rep at OTR solved it for me. So I just have to finish FP-31, attach the DC-30 in a 'message' when I submit the FP-31. I can leave almost everything else in FP-31 blank basically because the condo was 100% empty of personal items before I rented it. Hopefully this will help others.

I think this is incorrect. Schedule D1 of the FP-31 is for the value of the real estate itself.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I figured it out. The FP-31 is only for "personal' items (dvd's, cd's, tv's ,etc) left behind in the condo or apartment you're renting - it has nothing to do with the actual condo value, cost, depreciation etc. Wow, took me forever to figure that out but a rep at OTR solved it for me. So I just have to finish FP-31, attach the DC-30 in a 'message' when I submit the FP-31. I can leave almost everything else in FP-31 blank basically because the condo was 100% empty of personal items before I rented it. Hopefully this will help others.

I think this is incorrect. Schedule D1 of the FP-31 is for the value of the real estate itself.

I TAKE IT BACK. I'M WRONG, YOU'RE RIGHT. OMG HOW MANY HOURS HAVE I WASTED ON THIS ???!!!!!

>:[

[Anonymous]

Does anyone have any "easy button" suggestions for how to fill this out? It requires saying yes to at least one of the Schedules.

This is somewhat helpful. Is it wrong to use the same chair in the example or a printer or something to complete this?

https://mytax.dc.gov/WebFiles/Documents/Tut/Bus/PP/How_to_File_a_Personal_Property_Tax_Return.pdf

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What did you all put for "Kind of business or profession" if it's a condo? And "Number of DC Locations" is 1?

Real estate. If you call OTR they will literally walk you through the form.

Oh amazing - thank you! I'll give them a call!

Yea OTR was not helpful at all - they kept telling me to depreciate printers and copiers in my office (which I don't have).
Can anyone else say what they put for "Number of DC Locations"?

Sounds like you got someone unfamiliar with the form.

You have 1 location per rental property I would guess.

It really doesn't matter since I doubt any small time landlord would have 250K of real property.

Exactly, even if you own 4 fully furnished places your furniture wouldn't add to this even if you buy it all in one year. This is clearly created for different type of businesses or office space. And if they charge for used furniture (let's say you used to live in a place and then moved out and rented it out furnished) then you will just remove and throw away all the furniture to avoid paying tax on it. Not worth it. This form makes no sense. It must be new or some glitch in the system

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I figured it out. The FP-31 is only for "personal' items (dvd's, cd's, tv's ,etc) left behind in the condo or apartment you're renting - it has nothing to do with the actual condo value, cost, depreciation etc. Wow, took me forever to figure that out but a rep at OTR solved it for me. So I just have to finish FP-31, attach the DC-30 in a 'message' when I submit the FP-31. I can leave almost everything else in FP-31 blank basically because the condo was 100% empty of personal items before I rented it. Hopefully this will help others.

I think this is incorrect. Schedule D1 of the FP-31 is for the value of the real estate itself.

I TAKE IT BACK. I'M WRONG, YOU'RE RIGHT. OMG HOW MANY HOURS HAVE I WASTED ON THIS ???!!!!!

>:[

are you saying DC small LLs have to pay 3% annual tax on the entire value of their property? This would make you broke renting it out given property prices in DC. I don't believe this is the market value of your house. Most rentals don't produce more than 5% annual returns on the value of the property, taking most of it as tax revenue would bankrupt all DC landlords