While the $8,000 federal tax credit for first-time home buyers is set to expire December 1, 2009 (but is likely to be extended), the similar, and ongoing, $5,000 federal tax credit for first-time home buyers in the District is not too shabby either. DCMud has put together a nice chart that compares the two existing credits and notes the potential advantages of the D.C. credit.
See the bolded notes below:
|Anywhere in U.S.||Only in D.C.|
|Purchased principal residence by 11/30/09||Purchased principal residence in current year (subject to annual renewal)|
|Did not own a principal residence during preceding 3 years||Did not own a DC principal residence in D.C. during preceding year|
|Ineligible if modified AGI is $95,000 or greater ($170,000 if MFJ). Phase out begins at $75,000 ($150,000 MFJ)||Ineligible if modified AGI $90,000 or greater ($130,000 MFJ). Phase out begins at $70,000 ($110,000 MFJ)|
|Cannot claim if claimed D.C. First-Time Homebuyer Credit in any prior year||Cannot claim if eligible for First-Time Homebuyer Credit or if previously claimed the D.C. First-Time Homebuyer Credit|
|Repayment required if the residence is sold within 36 months||No repayment|