This page is specifically for our clients that have business or rental activity in the District of Columbia. In the last year, we saw that quite a few taxpayers had the following forms missing, both of which can lead to letters from the state & possible penalties:
- D-30 – required for those that have a rental income property with rental income over $12,000 annually
- FP-31 – required for those that have business use property. This includes rental owners, freelancers, contractors, and 1099-NEC employees!
The D-30 is quite straightforward – if you have a rental property in DC and your gross income is more than $12,000, you must have this form filed each year and pay the UBT tax.
Now for the PF-31, this is where things get more complicated. The District of Columbia’s language is that they “levy a tax against individuals on the tangible personal property owned or held in trust in that person’s trade or business in the District.” Since we all realize that this language cannot be more confusing, I will provide some common examples:
- You own a rental property that has furniture and equipment being depreciated
- You own a restaurant that has kitchen equipment
- You have an office that has furnishings purchased for the business
- Large servers, computers, and equipment of other kinds at your tech company
- Lawn maintenance equipment for a landscaping business
These are some examples that require you to file this FP-31 annual report. A few more important notes:
- Personal Property Tax Form FP-31 may be filed online by signing up for a MyTax.DC.gov account.
- You must file and pay your return via MyTaxDC.gov by July 31 every year
- There is no tax due if the value of your personal property is $225,000 or less, however, you still must file the Personal Property Tax return
We have had quite a few local taxpayers reach out after receiving letters for these so I wanted to proactively get this in front of our client base. Let me know by hitting “contact” if you have questions or need help getting caught up for these reports.
George Dimov CPA
(833) 829-1120 toll free
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