Okay so you missed the $8,000 tax credit back in April and you are bitter because you were really counting on that. SO WHAT. As of this week interest rates have hit an all time low of 4.69%. This is incredible but for some reason we aren’t seeing a flurry of buyers!?!?!?!? Last week the rate was at 4.75% and thought a .06% difference doesn’t seem to be much it really is. This can save you thousands over the lifetime of the loan. In addition DC still has a first time home buyer tax credit of $5,000! This is honestly the BEST TIME ever to buy. If you are on the fence you shouldn’t be.
Language taken directly from the Office of Tax and Revenue
This federal tax credit is available to first-time homebuyers in the District of Columbia. The credit is the smaller of:
- $5,000, if single, married filing jointly, head-of-household, or qualifying widow(er) ($2,500, if married filing separately) or
- The purchase price of the home.
In general, you may claim the credit if:
- You purchased a main house during the tax year in the District of Columbia, and
- You (and your spouse, if married) did not own any other main home in the District of Columbia during the 1-year period ending on the date of purchase.
Income restrictions and other qualifications may apply. You must file the federal form 1040 to claim this credit. For more information, contact the Internal Revenue Service at (800) 829-1040 or visit the local IRS Taxpayer Assistance Center at 500 North Capitol Street, NW, Washington, DC.