Second State tax return

[satishsnehal]

I file NJ tax return as my home state. If I have rental property in DC with net income or loss, which I include in my federal as well as NJ tax return, do I still need to file a DC tax return? I have no other earned income in DC.

[AmyC · Accepted solution]

You probably need to file a DC return but not D-40 income tax return. The DC  filing requirement is based on your gross rental income before expenses. If your rental income exceeds $12,000 for 2025, you must file Form D-30 Unincorporated Business Franchise Tax Return. Even if your property is a net loss, you need to pay the Franchise Tax (minimum $250).

If your gross rental income is less than $12,000, you do not need to file the D-30.

If your rental property is furnished, you also need to file a Personal Property tax return with DC. Unless the furnishings are worth over $225,000, there is no additional tax but filing is still mandatory.

NJ- file the NJ-COJ for tax paid to DC. If you didn't pay tax to DC in 2025, you would not file for a credit for 2025 and you can complete your personal tax return.

You should already have your business license that allows you to rent the property. 

1. If you don't, you can Apply via the DC Business Center. 
2. Select I want to Start from the dropdown. 
3. Select rental housing from the dropdown.

Once you have your license, you register to pay taxes.

1. Go to MyTax.DC.gov: Look for the link "Register a New Business - Form FR-500."
2. Tax Types to Select:
3. Unincorporated Business Franchise Tax (D-30): Select this if your gross income is over $12,000.
4. Personal Property Tax (FP-31): Select this if you provide appliances or furniture.
5. Wait for your Notice: After submitting the FR-500, OTR will mail you a "Notice of Business Registration" containing your Notice Number.

Reference: DC Rental Property FAQ