Are you in the market to buy a home in Washington, DC? You may have heard of some of the many programs, lending options, and tax benefits that exist in the market today. To name a few: DC Opens Doors, Loan Programs for Teachers, and the Down Payment Assistance Program. You may have even heard of first-time home buyer tax benefits in the past, but they have not been renewed or implemented for years.
As recently as 2011, there was a DC first-time home buyer tax credit in place that reduced the buyer's recordation tax by 50 percent. This credit saved many first-time home buyers thousands of dollars. There may be good news on the horizon for first-time buyers in DC. On October 6th, a few DC council members proposed a new first-time home buyer tax benefit.
If this bill is passed, how would this bill affect first-time home buyers in 2016? It would reduce the recordation tax rate by half. For first-time buyers spending more than $400,000, that tax would reduce from 1.45% to 0.725%.
Who would be able to apply for the tax break? All residents whom have never owned residential real property or an economic interest in a cooperative unit in the District of Columbia. The property would have to be the primary residence for the person applying. If passed, this bill would be huge benefit to first-time home buyers. Call or e-mail your DC council member today to show your support!
If you have any additional questions about DC Real Estate or programs for homebuyers please contact us for further assistance!