D.C.’s homebuyer tax credit is a really good deal

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:

$8,000 Credit

$5,000 Credit

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
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4 thoughts on “D.C.’s homebuyer tax credit is a really good deal

  1. I do hope the federal tax credit gets extended. I’ve been saving up for a few repairs I wand done in my house. But I’ll only be able to have these repairs done early next year. The tax credit will allow me to save lots of money.

    ZooeyHome Buyer Tax Credit

    • I do hope the federal tax credit gets extended. I’ve been saving up for a few repairs I wand done in my house. But I’ll only be able to have these repairs done early next year. The tax credit will allow me to save lots of money.

      Zooey Home Buyer Tax Credit

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