Filing Schedule E (not Schedule C) on rental property in DC needs to file DC Business Franchise Tax Form D-30?

[azkl]

We report the rental and its loss of a rental proeprty in DC on schedule E of 1040 (not schedule C as business income).  Do we still need to file Business Franchies Tax Return Form D-30?  If so, expenese on schedule E e.g. managemenrt fee, insurance, mortgage interest, property tax etc. can also be claimed as deductions on Form D-30?

Also, is balance sheet (shcedule I) mandatory since there is no balance sheet on federal 1040?

Thank you.

Andrew  

[rbynaker]

If annual gross receipts are $12K+ then a D-30 is required.  I don't complete the balance sheet if there's no separate entity.

[azkl]

Thanks.  So all the rental expenses e.g. mortgage interest, property taxes etc. can still be claimed as deductions on Form D-30?  I looked at it and it seems that it does not allow those except depreciation but i make use of the expenses making it a rental loss on schedule E so if net profits are subjec to that 8% tax, it seems inconsistent and unfair result wtih the suspended PAL/none taxable inxome on schedule E on federal side...

[sjrcpa]

Rental expenses are allowed on the D-30.

[rbynaker]

What software are you using?  When posting in Tax Talk we can't tell.  If it's ProSeries, the last time I did a D-30 ProSeries was just a glorified typewriter.  You have to enter the expenses in the appropriate sections of the D-30 (Sch C, E, G, etc.)

[azkl]

I use proseries.  

the only amount that flows from schedule E to D-30 was the gross rent and all other expenses do not flow so i was wondering whether or not all the expenses on schedule E was disallowed for DC franchise tax purpose...

[rbynaker]

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@azkl wrote:

I use proseries.  

the only amount that flows from schedule E to D-30 was the gross rent and all other expenses do not flow so i was wondering whether or not all the expenses on schedule E was disallowed for DC franchise tax purpose...

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It's just sloppy programming (IMO).  DC wants more details than Federal so you would need to enter additional information one way or the other but PS does very little to help you out here.  My guess is not enough bang for the buck when it comes to the percentage of overall returns needing a D-30 so they haven't bothered assigning programming resources to this.

I think you may still need to paper file this, unless maybe if your client has an EIN.  The software puts the name and address at the top of the form so that makes it slightly better than just using the blank PDF from the DC website.