Residency status - Owning a second home in DC

[taxquestion22]

Hello,

I live and work in Oregon, where I have a full-time job and own a primary residence. I purchased a studio apartment in Washington, DC in 2021. In 2023 I used the apartment for about 60 days during trips of 7-14 days at a time. Does simply owning a second home in DC mean that I am a full-year statutory resident of DC for tax purposes even if I use the home fewer than 183 each year? 

Thank you for your advice.

[Hal_Al]

Q. Does simply owning a second home in DC mean that I am a full-year statutory resident of DC for tax purposes even if I use the home fewer than 183 each year? 

A. No. 

Why are you asking? You do not need to file a non resident DC return because you work part time there. DC is reciprocal with OR (and all other states). 

[taxquestion22]

Thank you. I don't work part time in DC. I use the apartment to take writing breaks and attend talks related to my field of research. In 2022 I received income from a source in DC and filed a DC resident tax return. In 2023 I owned the apartment for 365 days and used it (was physically in DC) for about 60 days (7-14 days at a time) to attend talks and take time away to write. However, I don't have income in DC apart from my main salary from my employer in OR. The reason that I am asking is to determine whether I need to file a DC tax return (and if so, whether resident, part-time resident, or non-resident) simply because I had an abode in DC for all of 2023 and was physically present for about 60 days. In this case I did not work in DC apart from remote work for my employer in OR.

[TomD8]

DC's legal definition of a statutory resident isn't quite the same as it is in most other locations:

“Resident” means an individual domiciled in the District at any time during the taxable year, and every other individual who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year..."

https://code.dccouncil.gov/us/dc/council/code/sections/47-1801.04

Note that the law does not say that the individual has to actually reside in DC for 183 days or more.  I don't know if DC tax authorities would consider owning an apartment there for a full year as "maintaining a place of abode."  You might have to ask the DC tax authorities about that.

If you are a statutory resident of DC, then your situation would be is one of dual residency: you'd be a domiciliary resident of OR and a statutory resident of DC.

[maglib]

@taxquestion22   While DC has reciprocal tax agreements, that is not relatable to if you must file a return. As you maintained a statuatory residence you still must file. Reciprocity is if you live in a state and work in another, you won't be taxed, here you are a statuatory resident though.  You still need to file.

Here are the rules.  Specifically Place of Abode for more than 183 days even if permanent home was outside of DC you met that criteria.   You are required to file a tax return.  Now  I posted all the links and applicable law below.

• Your permanent residence is outside DC during all of
the tax year and you do not reside in DC for 183 days or
more in the tax year....  You do reside in DC per DC tax laws. so you do not meet this ruling as you maintain a Statuatory Residence. 

Do I have to file a DC income tax return? https://otr.cfo.dc.gov/page/individual-income-tax-filing-faqs
You must file a DC tax return if:

• You were a resident of the District of Columbia and you were required to file a federal tax return. (A resident is an individual domiciled in DC at any time during the taxable year);  NO  Domicile is the place where a person has his or her principal residence. The person must intend to keep that residence for the foreseeable future.  your Prinicipal residence is not in DC.
• You maintained a place of abode in DC for a total of 183 days or more even if your permanent home was outside of DC;  YES  

  Section 47-1801.04(17) of the DC Official Code describes a statutory resident as any individual who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year, whether or not such individual is domiciled in the District.

  An individual is a resident of the District if the individual is domiciled within the District at any time during the taxable year. DC Official Code, 2001 Ed. §47-1801.04(17).

• You were a part-year resident of DC (see instructions for part-year residents);  NO, you intended to return home based on your post.
• You were a member of the United States (U.S.) armed forces and your home of record was the District of Columbia for either part of or the full taxable year;
• You are the spouse of an exempt military person or of any other exempt person such as a nonresident presidential appointee or an elected official;
• If you want to receive a refund of DC taxes withheld during the year, or if you qualify for and want to receive the following refundable credits:
  • The DC Earned Income Tax Credit;
  • Schedule N, Non-Custodial Parent Earned Income Tax Credit;
  • Schedule H, Homeowner and Renter Property Tax Credit; or
  • Schedule ELC, Keep Child Care Affordable Tax Credit (formerly Early Learning Tax Credit).

• 7. How is the 183 days residency rule applied to tax returns?
  Every day that a taxpayer is in the District of Columbia and maintains a place of residency for an aggregate of 183 days or more, including days of temporary absence is counted towards the 183 days residency rule. However, if a taxpayer is not domiciled within the District and only lived in the District for less than 183 days during the taxable year, then the taxpayer must indicate on his her tax return in the “Filing Status” section.

  Please see also the provision(s) of § 47-1805.02(1) of the DC Official Code (2001 Ed.).

https://otr.cfo.dc.gov/page/audit-division-frequently-asked-questions

https://otr.cfo.dc.gov/page/individual-income-tax-filing-faqs

§ 47–1805.02. Returns — Persons required to file.

(1) Residents and nonresidents. — Every nonresident of the District receiving income subject to tax pursuant to this chapter and every resident of the District, except a fiduciary, who is required to file a federal return under the provisions of § 6012 of the Internal Revenue Code of 1986 [26 U.S.C. § 6012]. https://code.dccouncil.gov/us/dc/council/code/sections/47-1805.02

§ 47-1801.04(17). 

(17) “Employee” means an individual having a place of abode or residing or domiciled within the District at the time the tax is required to be withheld in respect to the individual’s employment by another, and to every other individual who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year, whether domiciled in the District or not, including an officer of a corporation, but excluding any elective officer of the government of the United States or any officer or employee in the legislative branch of the government of the United States whose compensation is paid by the Secretary of the Senate or Clerk of the House of Representatives, any officer of the executive branch of the government of the United States whose appointment was made by the President of the United States, subject to confirmation by the Senate of the United States, and whose tenure of office is at the pleasure of the President of the United States, or any Justice of the Supreme Court of the United States, unless the officer, employee, or justice is domiciled within the District of Columbia at any time during the taxable year. https://code.dccouncil.gov/us/dc/council/code/sections/47-1801.04#:~:text=(17)%20%E2%80%9CEmployee%E...