A new tax credit is in the works for first-time home buyers in Washington DC. The First-time Homebuyer Tax Credit Amendment Act of 2014 legislation being considered by the DC Council would reduce the recordation tax rate for first-time home buyers in Washington DC from 1.45% to .725% of the property sales price. The recordation tax is paid on every home purchase in Washington DC.
The tax credit would be available to people who’ve never owned a home in Washington DC, as well as individuals who have divorced or separated and a “formal settlement did not convey an ownership interest in a principal interest.” The purchased property would have to serve as the buyer’s primary residence. Under the bill there is no income limit and the tax credit would also be available for those first-time home buyers using the current DC Opens Doors program.
It’s not noted exactly when the legislation will be approved, but it could be as soon as early next year.
If you or someone you know is thinking about buying a home, please let me know. I’d welcome the opportunity to earn your business and your referrals. I can be easily reached by phone/text: 703-963-0142 or email: email@example.com.