Tax Credit for First-Time Homebuyers

Dear Darrell:
I was looking for a condo to buy, and since I am a first-time buyer, wanted to buy something before April 30 so I could get the $8000 tax credit. Now that program has expired. Do you know if it will be reinstated any time soon?
— Jay L, Foggy Bottom

Dear Jay:
I’m sorry you didn’t make it under the wire. I haven’t heard any specific rumblings about the $8000 tax credit being offered again. Everything I have read about it seems to indicate that it will not be offered again. However, that program did offer a great opportunity for many, many buyers, and it wouldn’t surprise me to see a strong push to bring it back.

In the meantime, however, buyers in D.C. still have the opportunity to use the $5000 D.C. tax credit. This federal tax credit is available to first-time homebuyers in the District of Columbia. There are more restrictions related to this credit than to the $8000 credit, but it is still a good deal for those just getting started.

Additionally, you should look into the D.C. Homestead Exemption, and the D.C. Tax Abatement Program. These are other programs specific to D.C. which can help you as you purchase your first property. I encourage you to speak with a loan officer who can explain the specifics of how these programs work. You can also go to the District Web site (www.otr.cfo.dc.gov), which has a lot of information. I find this site somewhat difficult to search, so you may want to call the phone number given on the site to get specific direction.

Darrell Parsons is the managing broker of the Georgetown Long and Foster office and abides by Equal Housing Opportunity regulations. Have a real estate question? E-mail him at darrell@lnf.com. He blogs at georgetownrealestatenews.blogspot.com.

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Sun, 23 Nov 2014 18:57:50 -0500

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