New $7500 First Time Buyer Credit

As part of the recent economic stimulus legislation, there is a new $7500 temporary tax credit to provide an incentive for first-time home buyers. The $7500 credit is available for the purchase of a principle residence on or after (retroactive to) April 9, 2008 and before July 1. 2009. The National Association of Realtors (NAR) has a great 6 page info sheet about the program and how it works, HERE.

$5000 DC First Time Buyer Tax Credit Renewed

The recent economic stimulus legislation also renewed the $5000 First Time Buyer Tax Credit for buyers in the District of Columbia. The credit does not have to be paid back like the $7500 federal credit. You can not use both the $7500 and $5000 tax credits, you can use one of the other. So, my recommendation for folks buying in DC use the DC Credit since they would not have to pay the credit back to the government. Learn more about the credit HERE.