All businesses in DC are required to File form FP-31, Personal Property Tax Return. This page is a guide to assist with understanding and filing your DC Personal Property Tax Return. Since it’s not an income tax return and you can simply file it through your online account with DC, it’s not something that I prepare, but I’m happy to provide support when requested.
How to File
The property tax returns can be filed through your online account with DC at https://mytax.dc.gov
Tax Year and Due Date:
The property tax return for the 2024 tax year is due July 31, 2023 and reports property your business owns as of July 1, 2023.
Sample Worksheet
Here is an Excel spreadsheet that you can use as a template to track your property and help with filing your DC property tax returns:
Sample-DC-Property-Tax-Return-Worksheet.xlsx
What Property is Reported?
Property that your business owns such as computers, furniture, equipment.
Does not include real estate, land, buildings, office space, homes, apartments, or registered vehicles.
Personal property in this context refers to any physical property other than real property (real estate, buildings, land, etc).
Instructions to the Property Tax Return:
Here is a link to DC’s instructions for the property tax return: https://mytax.dc.gov/WebFiles/Documents/2024%20FP-31%20Instructions.pdf
Please note that you can simply change the tax year in the link above from “2024” to another year to find the instructions for the year you are looking for.
$225,000 Exclusion:
There is no tax due if the value of your personal property is $225,000 or less, however, you still must file the return.
Schedules (copied from the instructions):
Schedule A-1: Books, DVDs and other reference material
Schedule A-2: Furniture, fixtures, machinery and equipment
Schedule A-3: Unregistered motor vehicles and trailers
Other tangible personal property
Schedule B: Supplies
Schedule C: Dispositions of tangible personal property
Schedule D-1: Possession of leased property
Schedule D-2: Leased property in DC
Depreciation Rates:
There is a table titled Depreciation Guidelines in the instructions (page 7 of the PDF) that lists various types of property and the depreciation rates.
Most furniture is depreciated at 10% per year. Meaning if you purchased furniture that costs $100 one year before the July 1 property tax reporting date, you would indicate the original purchase price is $100, the depreciation is $10, and the remaining cost is $90.
Computers and related peripheral equipment is depreciated at 20% per year.
This page in the instructions also says most property should not be depreciated more than 75% of the original cost. That means if you purchased an asset for $100, the maximum depreciation would be $75 and the minimum remaining cost would be $25.