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Category: Credits

What are the qualifications for the District of Columbia First-Time Homebuyer Credit?

**The District of Columbia First-time Homebuyer Credit has expired for homes purchased after 2011. In 2013 you can only claim a carryforward of the unused credit from 2011.**

The below information only applies to individuals claiming the D.C. First-time Homebuyer Credit on their 2011 tax return.

When do you qualify?: In general, you can claim the credit if both of the following apply:

  • You purchased a main home during 2011 in the District of Columbia, AND
  • You (and your spouse if married) did not own any other main home in the District of Columbia during the 1-year period ending on the date of purchase. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

Note: This only applies to the purchase of a "main home". Your "main home" is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

When don't you qualify? You cannot claim the credit if any of the following apply:

  • You purchased your main home in the District of Columbia after December 31, 2010, and you are eligible to claim the refundable first-time homebuyer credit figured on Form 5405.
  • You acquired your home from certain related persons or by gift or inheritance. Related persons include, but are not limited to, your grandparents, parents, spouse, children, and grandchildren.
  • Your modified adjusted gross income is $90,000 or more ($130,000 or more if married filing jointly).
  • You previously claimed this credit for a different home.

For more information, please review Form 8859.