Washington, DC 2013 First Time Buyer benefits
In December, 2012, DC updated its first time buyer benefits. I’m referring specifically to the DC Tax abatement, which allows for:
1. The buyer does not pay for the recordation tax, which is 1.1% of the sales price. Also, instead of the seller paying the transfer tax (also 1.1%), that transfer tax is credited to the buyer. The net change is a reduction in cost to the buyer for 2.2% 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.
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.
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.
1 Person Family: $56,100
2 Person Family: $64,080
3 Person Family: $72,120
4 Person Family: $80,100
5 Person Family: $86,520
6 Person Family: $2,940
7 Person Family: $99,360
8 Person Family: $105,780
Also, the sales price maximum is $367,200
DC has elected not to yet extend a separate program, the $5,000 DC first time buyer tax credit for 2013.