Saturday, December 23, 2006
President Bush has signed a tax bill into law that includes a $5,000 credit for homebuyers in DC. The federal income tax credit, which expired last year, is retroactive for the entire year and extends until the end of 2007. Purchasers who have not owned a home in the District for the prior year are able to use the credit, provided they do not exceed the income caps which begin to phase out at income levels of $70,000 for single filers and $110,000 for married filers. Buyers can claim up to $5,000 if single or married filing jointly, or $2500 if married filing separately.