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The DC Homestead Deduction went up earlier this year. When we last wrote about the tax benefit in 2012, it was $67,500. But now the DC Office of Tax and Revenue (OTR) has increased the deduction to $69,100.

Periodically, OTR will increase the DC Homestead Deduction based on cost of living adjustments. For historical reference, the deduction was $60,000 in 2006 and 2007. In 2008, it increased to $64,000. 

The DC Homestead Deduction benefits District residents who own and occupy property. It helps save you money in two ways -- by reducing your annual tax liability and providing a cap on the assessed value of your property.

The latest increase in the DC Homestead Deduction will reduce the annual property tax bill of qualified owners. It works by…

The DC Homestead Deduction is a real estate tax benefit for District residents who own and occupy property.  This deduction can save you hundreds each year by reducing your annual tax liability and providing a cap on the assessed value of your property.

There are a few criteria that must be met to qualify for the DC Homestead Deduction.  First, you must occupy the property shortly after closing as your principal residence.  In addition, the property must contain no more than five units, including yours.  For example, if you own a condo complex with 200 units, the building would not qualify for the DC Homestead deduction.  If you own a single family home or a smaller apartment building, then you would be eligible for the DC Homestead deduction. 

So how…