Dear PoPville – tax information for first time home-buyers in 2013?

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“Dear PoPville,

I was wondering if we could crowd-source a question about tax information relevant to first time home-buyers in 2013. I believe the $5k rebate ended, but are there other incentives/rebates/refunds we should know about?”

12 Comment

  • unless you are low-income, NO.

    • This is correct. Your current incentive is relatively low interest rates that may or may not drastically rise in the next 5 years.

  • I was a first-time buyer in 2012, which was unfortunately the first year the DC credit wasn’t available, since it was cut in the sequester. Possible it has been returned?

  • justinbc

    The rebate has ended, but you should be aware of the Homestead Deduction:

    This is generally filed on your behalf, but you might want to double check if the term sounds unfamiliar to you.

    • Oh god yes. My settlement company didn’t file this for me and I didn’t even hear about it until two years later.

      • That’s lame, they should have. What settlement company did you use? I honestly was not aware of the Homestead Deduction either, until my settlement company told me that they would file it for me. I’m glad they were on top of it. (I used Eisen & Rome PC and highly recommend them. I am not affiliated with them in any way.)

  • I bought a house in 2013 and there was no tax credit, but even without it I got a VERY healthy tax return

    • I bought a house in 2013 as well (duplex) w/o a tax credit, but was shocked at how low my return was. I itemized everything that is associated with a rental – income, depreciation, maintenance, but my return was only a 1/4 of what my return usually is. Not sure what happened…

  • The form is still available on the IRS website as a carryforward –,-District-of-Columbia-First-Time-Homebuyer-Credit

  • Not sure if they still have it (or what the income limit would be now), but when I bought in 2002, D.C. offered a 5-year property tax abatement to buyers whose incomes were $45,000/year or under at the time of purchase.

    • In 2009 when I bought the abatement was for under $51,000, so it may be higher now. It’s a big savings.

  • Just make sure you are weighing the standard deduction vs itemized. A house tips it in favor of itemized because you can write off things like points, property taxes and mortgage interest.

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