I am an investor in Washington DC, and currently have a single-member LLC that is treated as a disregarded entity for federal tax purposes. My question pertains to local business taxes in Washington DC. I believe I would be required to file at the local level using form D-30, but only if my LLC's gross revenue exceeds $12,000 for the given tax year. If its gross revenue is less than 12k, it appears I wouldn't need to submit anything based on information I have gathered.
Can anyone who has experience filing business taxes in Washington DC confirm or deny this? And are there any other forms I would need to consider besides D-30 when preparing my taxes next year? For reference my LLC is used purely for buy-and-hold properties.
Maryland CPA here who has a ton of DC clients. You're correct in that there is no need to file a D-30 if gross receipts are under $12,000. Rentals that gross more than this would be subject to filing the D-30 and paying the minimum tax or more. Otherwise, as a DC resident you'd be filing a D-40 only. Without knowing the circumstances of everything else, hard to advise you if anything else needs to be filed.
@Jeremy Stark , thanks so much for your insights and for confirming all that. Very much appreciated
It looks like Jeremy answered your question.
The D-30 instructions state that you must file if you have more than $12,000 of gross receipts. This would be income collected from tenants.
If you are also a resident of DC - you would be required to file a form D-40.
The minimum fee is $250 if your receipts are below 1 million.
@Michael Garofalo @Jeremy Stark @Basit Siddiqi I know this is an old thread, but hoping to bring it back around! I'm filling out the D-30 for a rental property AND a small business based in DC that are both under my SSN (and therefore on the same D-30). On line 2 it says "cost of goods sold and/or operations". Does anyone know what kind of expenses constitute operations for this purpose? Cost of good sold seems straightforward enough on the small business side, but I'm unclear if there are any other expenses I can include in the "operations" category (either SB or rental related) that would help bring the total gross under 12K. Any thoughts appreciated!
How did your accountant answer your question?
in general, long-term rental real estate won't have cost of goods sold. They don't sell any "goods"
If you are in the business of flipping, you may have cost of goods sold.
@Basit Siddiqi my tax client rents his basement and a room on airbnb and i file schedule c on his personal return so the income shows on D40 as rental income. is he therefore exempt from filing D-30?
Hi - I have a question. I have a house in DC that I sold last year (I do not live in DC). I rented it out for several years and realized that I never filled out a D-30 business license for the rental (rented it for 10 years). I tried to pay my D-30 capital gain on the property in DC and the system has no record of me and therefore I cannot pay the capital gain in DC. If I register in order to pay the tax, will they look back at previous years? I would imagine that many people have faced this.