On the District of Columbia 2008 Unincorporated Business Franchise tax return, Form D-30, the Office of Tax and Revenue erroneously captioned Line 6 as “Net Rental Income from D-30, Schedule D.” It should have read “Gross Rental Income from Schedule D, Column 3, Line 7.”
To determine whether an unincorporated business franchise tax return is required to be filed, where the only activity is a rental activity, complete Schedule D on page 3 of Form D-30. If Column 3, “Gross Amount of Rent,” line 7, is more than $12,000, an unincorporated business tax return is required to be filed and the correct tax paid.
District taxpayers who have a rental activity and have not completed and filed their Form D-30 should complete the return as follows:
- GROSS RENTAL INCOME - On Line 6, enter the total gross amount of rent from Schedule D, Column 3, Line 7.
- RENTAL EXPENSES - Rental expenses reported on Schedule D, Columns 4, 5 and 6 and totaled on Line 7, should be reported on Schedule G, “Other Allowable Deductions.” These and any other deductions reported on Schedule G should be entered on Form D-30, Line 21, and be included among “Total Deductions” on Line 22.
District taxpayers, who have filed a Form D-30 return reflecting only “Net rental income” on Line 6, do not need to file an amended return, unless the original return reported $12,000 or less on Line 10 “Total gross income.”
For additional information, call OTR’s Customer Service Center at (202) 727-4TAX.