DC Home-buyer Tax Credit Can Put You in a New Home for the New Year

Live in DC and need a break to buy a home? Congresswoman Eleanor Norton has won another two-year extension of the $5,000 DC home-buyer tax credit. The incentives are retroactive for 2010 and will continue through 2011.

This is in addition to the 5-year property tax abatement program currently in effect in DC. Income limits apply for both programs and you will need to complete separate forms for them. If you are considering the purchase of a new home in DC for the first time, contact real estate agent Mynor Herrera to help you determine how the DC home-buyer tax credit can put you in a new home for the New Year. - and possibly gain the Tax Abatement as well. 

The DC Home-buyer Tax Credit is a credit against the home purchaser's federal income tax. Homeowners can get a credit of up to $5,000 for their purchase. This is in addition to the DC Property Tax Abatement program.

Anyone who is a first-time buyer in DC is eligible for the tax credit. Persons who have previously owned a home outside of the District are also eligible. Purchasers may not have owned a home in DC for at least one year prior to the new purchase.

There are income restrictions for the tax credit. In addition, the dwelling must be residential. This includes houses, house-trailers, houseboats, cooperative apartments, and condominiums. There are no period of ownership restrictions or requirements however, the home must be the main residence of the purchaser. There are also forms that need to be completed in order to qualify for the credit.

The DC Home-buyer tax credit is one of the ways to help you purchase a new home in the District of Columbia. To determine how the DC tax credit can put you in a new home for the New Year, contact DC-area real estate expert Mynor Herrera.