What's Hot: Plans Progress For a New Grocery Store at Friendship Heights Mall | Move-In Ready Townhomes at EYA's Northeast DC Neighborhoods
DC's First-Time Buyer Tax Credit Is Gone, But Maybe Not For Good
The $5,000 tax credit available to DC home buyers expired at the end of 2009, but that doesn’t mean that DC buyers may never be able to take advantage of it again. UrbanTurf placed a call to Congresswoman Eleanor Holmes Norton’s office this morning, and a representative said that while there is no timeline for passage of another credit, if and when it is enacted, it could be applied retroactively for DC residents who have purchased a home since the credit expired at the end of 2009. Below is an overview of the credit and how it can be applied for, if legislation is passed enacting it.
The DC tax credit was not just for those who had never owned property before; you could qualify for the credit so long as you had not owned property in DC within the year previous to when you applied for it. The property must have been a primary residence (house, condo, or co-op), and it could not have been a gift or inherited from a family member. Most importantly, eligibility was limited to those making less than $90,000. If you made $70,000 or less annually ($110,000 filing jointly), you qualified for the full $5,000; if you made between $70,000 and $90,000 ($110,000 and $130,000 jointly), you qualified for a partial credit. If the credit is enacted again, the requirements will likely be similar to those above.
Claiming the First-Time Credit
When in effect, there was not a lot of readily available information online about how one would go about claiming the tax credit, but all that was required was simply filling out IRS Form 8859 and submitting it with your annual tax returns. If after filing your taxes it was determined that you owed money to the federal government, the credit would cover that liability up to the amount you qualified for. If you were owed money by the government, then the $5,000 was factored in to the refund that you received.
Update: After 45 minutes on the phone with the IRS, UrbanTurf was told that the DC credit is actually still active. However, the IRS representative could not provide any offical written confirmation of this statement. The Holmes’ office position appears to be the most credible source at this time.
See other articles related to: dc first-time buyer tax credit, irs form 8859
This article originally published at https://dc.urbanturf.com/articles/blog/dcs_first-time_buyer_tax_credit_is_gone/2651.
Most Popular... This Week • Last 30 Days • Ever
Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »
The new development keeps humming along in DC's Buzzard Point.... read »
It is early in the year, but there are already a number of areas around DC where home... read »
Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »
If you are tired of getting lost in their stores, IKEA has a new location planned tha... read »
At an ANC 4A meeting on Tuesday night, representatives from Whole Foods said that the... read »
The application to raze the infamous fast food location at New York and Florida Avenu... read »
While homeowners must typically appeal by April 1st, new owners can also appeal.... read »
The application has been filed for the American City Diner along Connecticut Avenue i... read »
The 650,000 square-foot project, designed by Adjaye Associates and Hickok Cole, will ... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- Whole Foods at Walter Reed To Open This Summer
- The End is Here: Raze Permit Filed For Wendy's at Dave Thomas Circle
- How to Appeal Your DC Property Tax Assessment
- Raze Application May Spell The End For One of DC's Last Diner Buildings
- A First Look at the Five-Building Centerpiece of the St. Elizabeth's Redevelopment
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro