DC Tax abatement
DC Tax abatement is an incredible program, which allows for:
1. The buyer does not pay for the recordation tax, which is .725%-1.45% of the sales price. Also, instead of the seller paying the transfer tax (1.1%-1.45%), that transfer tax is credited to the buyer. The net change is a reduction in cost to the buyer for 1.825%-2.9% of the sales price.
2. The buyer also will not pay for property taxes for five years. This, however, will not begin until the following October after buying. The homeowner won’t get their first bill showing property taxes not due until the following February after that. A purchaser in November 2022 would not see a tax bill showing $0 due until February 2024.
In order to be eligible and apply for these benefits, you should make sure to work with a title company in DC who is familiar with tax abatement so they can help you apply. Tax abatement is not possible to pursue with co-operatives.
There are income restrictions to the program based on household income. This is for everyone who will be living in the home, not necessarily just those who will own the home. These are the income limits effective October 1 2022:
1 Person Family: $75,600
2 Person Family: $86,400
3 Person Family: $97,200
4 Person Family: $108,000
5 Person Family: $116,640
6 Person Family: $125,280
7 Person Family: $133,920
8 Person Family: $142,560
Also, the sales price maximum is $548,000
Income limits update annually and the link to the application is here. You must apply at time of purchase, it’s not possible to apply after you purchase.
Pre-Qualify Now: https://ajaffe.firsthome.com/startapp
firstname.lastname@example.org 240 – 479 – 7658