Wash DC income & property tax question - out of state investor

3 Replies

Hi All

I live in NY, am thinking of purchasing a rental property in DC.  

2 questions:

1) Do I need to file a separate tax return to DC ?   I will of course include this rental property in my 1040 and my NY return, but not sure if there is a separate return that I also need to file to DC for the rental property. 

2) How can I find out how much more in property tax I will be paying if the property is not owner occupied and I am from out of state?  I read it somewhere that if the property in DC  is my primary residence, I can benefit from approx $70K in reduction from the property's assessed value.    Is that the only difference as far as ppty tax is concerned for owner occupied vs out of state investor ownership?

Any advice would be appreciated.

MJ

@Mary Joe I am not an accountant but from my experience with other clients who owns properties in DC, they file their rental properties on their residing State Tax Return. They don’t file a DC tax return. If there is such a requirement I’m not aware that it exists.

DC has one of the lowest property taxes - at least in the DMV area. The City only charges $0.85 per $100 in assessed value.

Yes to DC tax return. Residential property tax rate is 0.85% of the properties value per year.  

Originally posted by @Russell Brazil :

Yes to DC tax return. Residential property tax rate is 0.85% of the properties value per year.  

Thanks.  I bet a lot of out of town investors don't even realize that it is required especially if they use Turbotax or similar programs to file their taxes. 

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