As the calendar flips to a new year, it's not just resolutions and fresh starts that come knocking — it's tax season, too. And for landlords in Washington, D.C., it's crucial to get your ducks in a row to remain compliant with local regulations.
You may have come to understand the ropes of becoming a legal landlord in the District, but the responsibility doesn't end there. Filing your business tax return to report rental income is essential, and we're here to ensure you're prepared every step of the way.
Here's a rundown of some frequently asked questions to help you tackle the 2024 tax season like a pro:
Who Needs to File?
All rental property owners who earned $12,000 or more in rental income during 2023, regardless of net income, must file a D30 or D20 tax return, irrespective of residency status.
What's Required for Filing?
DC mandates landlords to report rental income and pay associated taxes through either a D-20 Corporate Franchise Tax Return or a D-30 Unincorporated Franchise Tax Return.
D30 or D20: Which One?
The type of return you file hinges on how ownership is listed on your license. Corporations file a D-20, while others file a D-30.
When's the Deadline?
File your tax return by April 15, 2024, to avoid penalties.
Sold the Property?
Even if you sold your property, you may still need to file a return if you earned rental income in 2023. Seek advice from a tax professional to assess your obligations.
Understanding the Tax Rate
The current tax rate for income reported on D30 or D20 is 8.25%, or a minimum tax, whichever is greater.
How to File?
File and pay online at MyTax.DC.gov or through paper forms via mail or your tax professional.
Using Tax Preparation Software
Exercise caution when using software like TurboTax; ensure they accommodate business tax returns.
Exemption from Filing?
Corporations are not exempt. Others may be if gross receipts are under $12,000, but it's wise to file a D-30N Affidavit of Gross Income as proof.
Resources for Assistance
Refer to DC's published booklets for detailed guidance.
Save the Date: April 15, 2024
Mark your calendars to ensure timely filing and compliance.
While we offer information, it's essential to consult qualified tax and legal advisors for personalized assistance.